By Justine Irish D. Tabile, A reporter
PHILIPPINE car sales grew 6.6% year-over-year in August, despite a drop in passenger car sales, according to an industry report.
A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed vehicle sales reached 39,155 units in August from 36,714 units in the same month last year.
Month-on-month, vehicle sales were down 0.4% from 39,331 sold in July.
August vehicle sales fell 5.6% to 9,529 from 10,094 sold last year.
Month-on-month, passenger car sales were down 12.76% from 10,923 in July.
However, this was ofup 11.3% year-on-year to 29,626 vehicles sold in August from 26,620 last year. Commercial vehicles account for 75.66% of the goods sold by this industry.
Month-on-month, sales of commercial vehicles increased by 4.3%.
Once down, light vehicle sales increased 3.3% year-on-year to 21,812, while Asian Utility Cars (AUV) sales increased 53.5% to 6,829.
Sales of medium trucks fell 4.9% to 312, while sales of large trucks fell 64.8% to 45.
Of course fIn the first eight months, car sales rose 10.3% to 304,765 from 276,215 last year, CAMPI-TMA data said.
Passenger car sales fell 14% to 80,327 in the January to August period, while commercial vehicle sales rose 9.1% to 224,438.
Economist Rizal Commercial Banking Corp. Michael L. Ricafort said that the introduction of new cars and the improvement of employment data are encouraging the growth of car sales in recent months.
“New models, more models, electric and hybrid cars [launches]favorable demographics, and improving employment data in recent months continue to drive demand for vehicles,” said Mr. Ricafort in a Viber message.
“[This was] it is reflected in the double-digit growth in consumer loans, especially auto loans, which are breaking the relatively high interest rates,” he added.
The first report of the Bangko Sentral ng Pilipinas showed that consumer loans grew by 24.3% to P1.42 trillion at the end of July, while auto loans increased by 19.9% to P424.93 billion.
“In the coming months, lower Federal Reserve and local policy rates could increase demand for auto loans and auto purchases,” said Mr. Ricafort.
In August, the Bangko Sentral ng Pilipinas (BSP) lowered policy rates for the first time in nearly four years. The benchmark rate was cut 25 basis points to 6.25%, from a nearly 17-year high of 6.5%.
Toby Allan C. Arce, head of trading at Globalinks Securities and Stocks, Inc., said the auto industry’s sales are driven by business vehicles.
“These vehicles cater mainly to businesses, transportation, and transportation needs, which show a change in use and performance, possibly due to increased demand for delivery services, support of goods, or increased business in the post-pandemic period,” said Mr. Arce. via Viber.
“The share of passenger cars decreased significantly in August. However, continued strong performance in the commercial sector more than offset this decline, suggesting that businesses, rather than individuals, are leading the market recovery,” he added.
Of fIn the first eight months, Toyota Motor Philippines Corp. remained the market leader with sales of 140,654 units, up 10.9% from 126,795 last year. Toyota sales made up 46.15% of the entire industry.
Mitsubishi Motors Philippines Corp. ranked second with a market share of 19.2%. Mitsubishi sales jumped 16% to 58,513 in the first eight months.
Third place was Ford Motor Co. Phils., Inc. which decreased by 3.8% to 18,961 units. This was 6.22% of the industry.
Rounding out the top five were Nissan Philippines, Inc., whose sales rose 2.2% to 18,270, while Suzuki Phils., Inc. increased sales by 11.7% to 13,206 units.
Last month, CAMPI increased its sales target to 500,000, from 468,300 initially. If possible, this would be the industry’s highest annual sales to date and would represent a 16.3% increase compared to last year’s 429,807 units sold.