Blogs

Home | Blogs
Boom Time for the Filipino Auto Industry
Mar 24, 2008

2008 started with a solid start for the Philippine auto industry as sales of cars shot up significantly with the availability of a greater variety of new models of cars.
 
The Chamber of Automotive Manufacturers of the Philippines Incorporation (CAMPI) reported a great beginning for the Philippine auto industry this year as car sales, in January, shot up 17% year on year, as reported by pacificnewscentre.com,
 
The CAMPI also revealed sale of 8,808 Units in January 2008 by the industry. The period saw phenomenal growth in the passenger car segment with sales growth of around 29%. But the market supremacy of Commercial Vehicles (CV) remained intact as the segment captured 69% of the market share and registered sales growth of 12%.
 
CAMPI President, Elizabeth Lee, said, "It is a good showing for the industry to jump start the year 2008 with a strong growth”, as reported by PNC on February 11, 2008.
 
Much of the credit for the solid growth in the industry goes to the first Philippine International Motorshow held in the country. A vast array of new models was launched by most manufacturers last year that led to a spurt in passenger car segment sales in January 2008. Around 5,844 Units of passenger cars were sold in January. New consumers are also opting for new models due to international style and easy affordability.
 
The hike in sales was also stimulated by the final decision of Supreme Court on putting an end to imports of second-hand vehicles, forcing consumers to opt for new cars.
 
In case of both passenger cars and CVs, demand shot up tremendously in 2007. As a result, overall vehicle sales in January 2008 went up as well. Apart from these reasons, financing promos too contributed. Introduction of a greater number of diesel vehicles by the auto industry boosted the sales because petrol prices are rising faster than diesel. 

As per a Research Analyst at RNCOS, “The automobile industry of Philippines is in midst of a boom with increasing sales and new models flocking the market. The growing demand for passenger cars and CVs is forcing the industry to provide desired cars along with easy finance facilities to consumers. With fuel prices continuing to shoot up, manufacturers also need to come out with fuel-efficient vehicles on a regular basis to ensure new vehicle sales.”

Related Market Research Reports:
Czech Republic Automobile Sector
Brazil Automobile Industry till 2010
Booming Russian Automobile Sector