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Philippines: Carmakers see hope of hitting 2021 target with September sales growth

  • Oct 11, 2021

MANILA, Philippines — Car manufacturers posted a double-digit sales growth in September, a performance that the industry considers “crucial” to achieving its sales target for this year.

What’s new

Automakers sold a total 21,492 units in September, 35.6% higher compared to sales in August when Metro Manila and other provinces briefly returned to harsh lockdowns, a joint report by Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA) released Monday showed.

But year-on-year, vehicle sales sagged 12.4%, reflecting the industry’s uphill struggle to recovery amid on-off lockdowns that continue to sap demand.

Data showed the industry sold 191,605 units in the first nine months, up 29.5% compared with the same period last year.

Why this matters

Vehicle sales are often used as barometer of economic strength. The central bank, for instance, closely follows this to measure consumer appetite for durable goods.

Household consumption represents 70% of annual economic output, and big purchases like cars materially add to gross domestic product when produced more.

What VIPs say

CAMPI President Rommel Gutierrez welcomed the month-on-month surge in sales, saying the ascent was necessary for the industry to hit its goal of a 30% on-year sales growth in 2021.

“Amidst the challenges, the industry’s optimism still lingers for a better sales performance in the fourth quarter this year,” Gutierrez said.

“This is driven by the overall improved consumer confidence resulting from a more buoyant economic condition and household spending, according to the recent government data,” he added.

Other figures

  • A total of 14,913 commercial vehicles were sold in September, up 36.2% month-on-month. This segment accounted for 69.39% of total sales during the month.
  • Passenger cars sold hit 6,580 in September, 30.61% higher compared to the previous month’s sales.

Source: https://www.philstar.com/business/2021/10/11/2133375/carmakers-see-hope-hitting-2021-target-september-sales-growth