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Philippine Auto Sector saw Modest Growth in March
Apr 24, 2009

Automobile sales in Philippines rose 1.1% in March 2009, boosted by the stable credit market of the country, affordable automobile packages and overseas remittances’ inflow.

The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) stated that in March 2009, the domestic vehicle sales in Philippines recorded a moderate growth, as reported by GMA NEWS.TV

The vehicle sales in Philippines surged 1.1% to reach 10,746 Units in March 2009 from 10,625 Units in March 2008. Sales of both commercial vehicles as well as passenger cars grew robustly during the period. Commercial vehicles lead with the market with a share of 64% and witnessed sale of 6,981 Units throughout the country in March 2009. In this way, the sales of commercial vehicles (including light commercial vehicles and Asian utility vehicles) surged 19% during the month. Top automobile seller was Toyota with sales of 3,512 Units, which was followed by Mitsubishi (1,871 Units) and Honda (1,543 Units). 

However, total sales in Q1 2009 were 1% down at 28,564 Units from the same period a year before. However, according to experts, this is a far better performance keeping in view the double digit falls seen in the large overseas markets; for example, in the US, there was a 37% decline in sales.

This sustained growth in the automobile industry of Philippines is accredited to the relatively stable financing environment in the country. The stability of the credit market made it easy for consumers to purchase vehicles. Moreover, constant inflow of overseas remittances and affordable automobile packages offered by automobile companies also boosted the industry. 

Furthermore, the positive trend is expected to continue in coming times also with 2%-4% growth forecast for 2009. The auto industry, at present, is seeking ways to bolster growth by offering better services to buyers at competitive prices. Banks are also offering attractive financing to consumers. The auto industry players in Philippines are planning to carry forward with the vehicle packages offerings at affordable prices to remain price-competitive.

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