Vehicle market in free fall as car sales plunge 43% in June
The combined vehicle sales of Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) declined by 12.7 percent this year to 171,352 units in the first half this year from 195,772 units in 2017.
Sales of passenger cars and commercial vehicles plunged by 16.5 percent and 10.4 percent, respectively, in the first half of 2018.
For the month of June alone, the groups’ vehicle sales reached 29,350 units, down by 21.7-percent from 37,479 unit sales a year ago.
Sales of passenger car segment dropped by 42.6 percent in June 2018 to 7,766 units from 13,525 units sold in June 2017.
Commercial vehicle segment sold a total of 21,584 units last month, a 9.9-percent decrease from 23,954 units sold a year ago. Asian utility vehicles posted the biggest decline in this segment at 31.7 percent to 5,061 units in June 2018 from 7,414 units sold in June 2017.
In the trucks segment, only light trucks registered a decline in sales of 5.7 percent to 706 units, while trucks and buses categories four and five both recorded double-digit sales of 25 percent and 22.9 percent, respectively.
CAMPI President Rommel Gutierrez attributed this decline in automotive vehicle sales to customers’ purchasing prioritization with the increasing inflation rate – Filipinos prioritize buying basic goods and services while delaying big ticket items like motor vehicles.
“This is a typical consumer’s behavior pattern when economic condition is a bit gloomy due to less favorable economic indicators. However, we remain optimistic that our sales will recover in the coming months, and hopefully a sustained growth by the end of the year,” he added.
But he said the industry was keeping its flat growth target this year at 450,000-unit sales despite the fallout fom the Tax Reform for Acceleration and Inclusion (TRAIN) Package 1. (PNA)