By Justine Irish D. Tabile, Reporter
New car gross sales jumped by an annual 23.2% in February, the quickest development in seven months, in line with a joint report by the Chamber of Automotive Producers of the Philippines, Inc. (CAMPI) and the Truck Producers Affiliation (TMA).
The trade report despatched Tuesday night time confirmed that car gross sales elevated to 38,072 items in February from 30,905 items in the identical month a 12 months in the past.
At 23.2%, that is the best year-on-year development in seven months or because the 33.3% gross sales development in July 2023.
Month on month, car gross sales additionally rose by 11.8% from the 34,060 vehicles offered in January.
In a press release, CAMPI President Rommel R. Gutierrez attributed the upper gross sales in February to “early advertising campaigns and improved inventories supported by steady rates of interest.”
“We hope to maintain this momentum and obtain a powerful first quarter end, which can set the outlook for 2024,” he stated.
The Bangko Sentral ng Pilipinas saved its benchmark rate of interest at a close to 17-year excessive of 6.5% in February, marking the third straight assembly that it left charges unchanged.
From Might 2022 to October 2023, the central financial institution raised borrowing prices by 450 foundation factors.
In February, industrial car gross sales climbed by 19.9% to twenty-eight,434 from 23,716 in the identical month a 12 months in the past. This accounted for 74.7% of the trade’s whole gross sales.
Month on month, gross sales of economic autos went up by 11% from 25,614 items offered in January.
Damaged down, gentle industrial car gross sales rose by 17.7% to 21,236, whereas Asian utility car (AUV) gross sales rose by 29.9% to six,360. Gross sales of sunshine industrial autos and AUVs grew on a month-on-month foundation by 12% and seven.9%, respectively.
In February, gross sales of sunshine and heavy vans elevated by an annual 17.8% and eight.9% to 516 and 61, respectively. Gentle truck gross sales went up by 25.2% on a month-on-month foundation, whereas heavy truck gross sales had been down 3.2% from January.
Gross sales of medium vans declined by 10.3% 12 months on 12 months to 261 in February and by 7.4% month on month.
In the meantime, passenger automotive gross sales rose by an annual 34.1% to 9,638 items in February from 7,189 items a 12 months in the past. Month on month, gross sales of passenger vehicles went up by 14.1% from 8,446 items in January.
For the primary two months of the 12 months, car gross sales went up by 19.4% 12 months on 12 months to 72,132 items.
Industrial car gross sales rose by 18.2% to 54,048, whereas passenger automotive gross sales jumped by 23.1% to 18,084 within the January-to-February interval.
As of end-February, Toyota Motor Philippines Corp. remained the market chief with a forty five.9% share as its gross sales rose by 16.9% to 33,070 items.
Mitsubishi Motors Philippines Corp. got here in second with a 24.5% enhance in gross sales to 13,271 items within the January-to-February interval.
In third spot is Ford Motor Co. Phils., Inc. as gross sales jumped by 24.1% to five,178 items.
Rounding out the highest 5 had been Nissan Philippines, Inc., which noticed a forty five.6% enhance in gross sales to five,148 items, and Suzuki Phils., Inc. which posted a 0.4% rise in gross sales to 2,950 items.
“The sustained double-digit development in car gross sales should be attributed to the continued pickup and restoration of many companies and industries from the pandemic,” Rizal Industrial Banking Corp. Chief Economist Michael L. Ricafort stated in a Viber message.
He famous demand for big-ticket objects similar to autos continued, regardless of the elevated rates of interest since 2022.
“You will need to notice that the sustained double-digit development in car gross sales is greater than thrice the nation’s financial development,” he added.
The Philippine financial system grew by 5.6% in 2023, which is slower than the 7.6% enlargement in 2022 and the federal government’s 6-7% goal for 2023.
“For the approaching months, doable Federal Reserve fee cuts later in 2024 that could possibly be matched regionally may assist spur higher demand for car gross sales,” Mr. Ricafort stated.
Globalinks Securities and Shares, Inc. Head of Gross sales Buying and selling Toby Allan C. Arce stated car gross sales development could have been pushed by the introduction of recent fashions of electrical autos (EVs) and plug-in hybrids in addition to reductions and financing offers.
“Infrastructure initiatives similar to highway development and enhancements could have additionally elevated demand for autos, notably industrial autos like vans,” Mr. Arce stated.
He stated that shopper demand for brand spanking new autos could also be sustained if the financial system “stays steady or continues to develop.”
Nonetheless, Mr. Arce stated “adjustments in authorities insurance policies associated to automotive trade regulation, taxation, or incentives may have an effect on shopper conduct and gross sales.”
Earlier this month, the Nationwide Financial and Growth Authority (NEDA) stated that there was a dialogue between businesses on the doable enlargement of Government Order (EO) No. 12, which grants incentives for EVs, to incorporate e-motorcycles and hybrid autos.
In the meantime, Regina Capital Growth Corp. Head of Gross sales Luis A. Limlingan stated that the robust car gross sales in February “alerts a sturdy restoration, fueled by elevated shopper confidence and strategic advertising efforts.”
“Dominance by GT Capital Holdings Inc.’s Toyota highlights market consolidation. Nonetheless, dangers similar to provide chain disruptions warrant monitoring,” Mr. Limlingan stated in a Viber message.
“Regardless of challenges, the trade’s 9% gross sales development goal for the 12 months displays optimism for sustained momentum. Traders ought to keep vigilant amid evolving market dynamics,” he added.
For 2024, CAMPI gave a conservative gross sales forecast of 468,300 items, 9% up from the 429,807 items offered in 2023.
