(Excerpt)
New vehicle sales in the Philippines stood at 25,799 units
during April, up 0.8% year on year (y/y), reports the
Philippine Star, citing data released by the Chamber of
Automotive Manufacturers of the Philippines Incorporated (CAMPI)
and the Truck Manufacturers Association (TMA). Of this total, sales
of passenger vehicles fell by 22.7% y/y to 7,661 units, while
commercial vehicle (CV) sales rose 15.7% y/y to 18,138 units. In
the year to date (YTD), total vehicle sales in the country are down
0.4% y/y at 111,187 units. This is split between passenger vehicle
sales of 33,833 units (down 12.8% y/y) and CV sales of 77,354 units
(up 6.3% y/y). "Sales last month remain erratic on a monthly basis,
but we expect that positive growth trend on a yearly basis will
continue to improve in the coming months," said CAMPI president
Rommel Gutierrez.
Significance: The Philippine new vehicle market
has remained in positive territory for the past three months. The
marginal growth in April was mainly due to a low base of comparison
However, despite the improvements over the last three months, YTD
sales remain in negative territory, mainly due to the
implementation of higher vehicle excise taxes; higher petroleum
prices, which have raised the total cost of owning a vehicle; and
the indirect impact of higher interest rates and inflation, which
have affected buyer preferences and priorities. As reported
earlier, the industry hopes to recover with a 10.0% y/y increase in
sales during 2019. IHS Markit expects light-vehicle sales in the
country, including passenger vehicles and light commercial
vehicles, to grow by 8.9% y/y to 422,827 units in 2019, mainly
thanks to new model launches and a low base of comparison.
