By Justine Irish D. Tabile, Reporter
NEW VEHICLE SALES could hit the 500,000 mark this year amid more launches and double-digit sales growth in the first half, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).
“For 2024, we have set a conservative target of 468,300 units in sales. However, with the excitement and momentum to make up for the Philippine International Motor Show (PIMS), we are optimistic about surpassing this goal and potentially reaching the 500,000 units mark,” said CAMPI President Rommel R. Gutierrez at a press conference on Monday.
If realized, this will be the industry’s highest annual sales to date and will represent a 16.3% increase from the 429,807 units sold in 2023.
Mr. Gutierrez said the industry had seen unexpectedly strong sales in the first half of the year.
“It’s a really good sign that the industry is really gaining momentum. So, we hope that it will really continue, at least in the second half, and give us a basis for a better projection next year,” he added.
He noted that historically, car sales pick up in the second half, especially in the months leading to December.
The latest joint report by CAMPI and the Truck Manufacturers Association showed that vehicle sales rose by 10.9% in the January-to-July period to 265,610 units from 239,501 last year.
Sales of commercial vehicles went up by 8.7% to 194,812, while passenger car sales grew by 17.3% to 70,798.
Toyota Motor Philippines (TMP), which accounted for nearly half or 46.21% of the total industry sales in the seven-month period, is confident about the industry achieving its sales target this year.
“We, as a whole, are quite confident about hitting the milestone size for the growth of the market this year,” said TMP President Masando Hashimoto.
“Maybe one of the reasons is the healthy growth of financing or the new car model introductions to the market. There are several factors there, but we are all very confident in this year’s target,” he added.
Mr. Gutierrez said sales in the provinces, especially in Region III and Region IV, have been growing. Provincial sales now make up 60% of the industry’s total sales.
“We, the distributors, understand that Metro Manila is already crowded. That is why the dealers are mostly in the provinces, because when you have a dealer there, it encourages people to buy cars,” he said.
However, Mr. Gutierrez said the industry outlook could still be affected by possible supply chain disruptions, inconsistent policies and the exchange rate.
“I think the supply has significantly improved but remains a challenge. In terms of government policies, we had some uncertainties in the legislation, and we are closely monitoring it,” he said.
The industry is monitoring the progress of a bill that includes the removal of the excise tax exemption for pickup trucks, Mr. Gutierrez said.
“This affects planning, and in fact, we have been monitoring it since last year. The uncertainty really matters negatively because even stocks are being scheduled,” he said.
The Finance department is pushing the removal of the excise tax exemption for pickup trucks under the Tax Reform for Acceleration and Inclusion law.
“Inconsistent government policies have always been an issue not only in the automotive industry but even in other industries,” Mr. Gutierrez said.
Mr. Hashimoto said the challenge is how to create a sustainable business environment that will support vehicle manufacturing in the Philippines.
“This is not a short-term challenge, but if you look at long-term industrial growth… this is really key to everyone, especially Toyota,” he said.
