Industry reports 30% growth in auto sales in 2014, sees 16% rise in 2015
Motor vehicle sales in 2014 grew 30 percent marking another banner year as sales climbed to 234,747 units but industry players expect growth in 2015 to slowdown at 16 percent or 272,000 units only, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) said.
According to the joint statement, the 19-member organization sold a total a total of 234,747 units as against 181,283 units in 2013.
For 2015, the CAMPI-TMA group expects to reach greater heights as it targets to sell 272,000, or an additional volume of 37,000 units for a projected growth rate of at least 16 percent.
“The year 2014 ended on a very high note as the Philippine automotive industry achieved record breaking feats month after month. This record performance was backed by robust sales in all product categories,” said CAMPI President Rommel S. Gutierrez.
The passenger car segment exhibited the highest growth rate of 48 percent with sales of 90,287 units compared to the total sales of 61,083 units in 2013.
“This growth in the passenger car sales was largely fuelled by the successful introduction of several new models and wider acceptance of small car product category,” Gutierrez said.
The commercial vehicle segment also performed well with a sizeable increase of 20 percent or 144,460 units in 2014 compared to 120,200 units sold in 2013.
Within the commercial vehicle category, light commercial vehicle showed a significant volume increase of 26 percent with sales of 93,589 units for 2014 compared to the 74,398 units sold in 2013.
Top market performer for 2014 is still Toyota Motors Philippines Corporation with 45 percent market share. Mitsubishi Motors ended the year in second with 21 percent share. Ford Motor Philippines, the most improved in sales, climbed to third with 8.7 percent share while Isuzu finished fourth with 6 percent share. Honda completes the top five with 5.7 percent.
For 2015, the CAMPI-TMA group expects to reach greater heights as it released its sales target of 272,000, or an additional volume of 37,000 units for a projected growth rate of at least 16 percent.
The reasons cited include the projected continued improvement of the economy, increased government spending in preparation for next year’s national election and the positive impact of the projected continued decline in world fuel prices. Of this volume, passenger cars and commercial vehicles will take up 40 percent and 60 percent, respectively.
Gutierrez expressed confidence that the 2015 total industry (including pure traders from the other organization Association of Vehicle Importers and Distributors) demand can easily exceed 300,000 units.
He also noted that this fearless forecast is well within the market growth projection the industry submitted as part of the roadmap where 2015 would be the year when the market is expected to breach the 300,000-unit mark.
He, however, emphasized that the challenge remains to be for the local assembly sector to maintain or even increase its share of this growing market and that the industry continues to wait for the announcement of the appropriate initiative package from the government to make this happen. For 2014, locally assembled vehicles accounted for only 37 percent while imported vehicles captured 63 percent.
In terms of product category, the small car passenger segment will continue to attract more buyers particularly the young professionals comprising the growing BPO industry. The industry also projects a bigger demand for SUV and light commercial vehicles mainly due to the worsening weather pattern.
“Many consumers now see the need as well as practicality of owning SUVs and similar higher vehicles to combat the floods. Dropping oil prices, wider product selection at competitive prices and improved fuel efficiency of higher displacement vehicles are providing the additional push especially to those who are considering a second vehicle purchase,” Gutierrez said.
For its other activities, this year will be the Philippines’ turn to host APEC 2015 and the industry as an active APEC participant will be hosting two APEC Auto Dialogues. It plans to put in the agenda the discussion of programs that will promote parts and components development by the SME sector.
“This year will be another busy, lively year as we eagerly attend to a robust market while we continue to find ways to develop the industry,” Gutierrez said.
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