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Philippines: Low base boosts June car sales to 4-month high
MANILA, Philippines — Car sales soared to a 4-month high in June to post another double-digit growth, as low base effects from last year’s pandemic-induced slump continued to bloat the figures.
What’s new
Carmakers sold 22,550 units in June, up 44.8% year-on-year, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA) reported on Tuesday.
Month-on-month, vehicle sales inched up 2%, data showed.
Why this matters
Economic officials usually track auto sales as it is typically used as an indicator of the economy’s health. This is because consumer spending historically accounts for about 70% of the Philippine economy and heightened purchases of big-ticket items like cars have a big contribution to the economic output.
What the industry says
For CAMPI President Rommel Gutierrez, the double-digit sales growth last month means the industry is now “coping up with the pandemic.” While there were indeed some gains this year, much of the lift came from so-called “base effects” from last year when the pandemic depressed car sales figures.
From January to June, the industry sold 132,767 units, up 56.1% on-year. Both CAMPI and TMA are forecasting a 30-percent sales growth this year.
“This is a respite amid the less buoyant consumer outlook for big-ticket items for the second quarter of this year according to a government survey,” Gutierrez said.
“The auto industry continues to adjust to the effects of the pandemic at the same time striving to strike a balance between its contribution to the economy and keeping its stakeholders safe and healthy during these unprecedented times,” he added.
Other figures
- By vehicle type, commercial vehicles accounted for bulk of the shares in June with 15,168 units sold, up 39.6% year-on-year. In the first half, manufacturers sold 90,361 units of this vehicle type, translating to an annual growth rate of 47.8%.
- Sales of passenger cars grew 56.7% year-on-year in June to 7,382, bringing the year-to-date sales to 42,406, up an annualized rate of 77.3%.
Source: https://www.philstar.com/business/2021/07/13/2112198/low-base-boosts-june-car-sales-4-month-high