RP car industry sales grow but miss target in 2008

MANILA, Philippines - The Philippine automotive industry closed 2008 with a sales figure a tad short of target but manufacturers said the local market is still better off as it managed to post growth amid the global economic and financial slump. Data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) released on Thursday showed that vehicle sales in the Philippine market reached 124,449 units in 2008. The target was 125,000 units. The number of units sold in 2008 was 5.55 percent higher than that sold in 2007. Toyota Motors Philippines Corp. led with a 36.9 percent market share representing 45,915 units. Coming in a far second is Mitsubishi Motors Philippines Corp., which sold 17,539 units and cornered 14.1 percent of the market. Honda Cars Philippines, Inc. took the third spot for an 11.5-percent market share for selling 14,298 units. Sales in December alone stood at 9,885 units and CAMPI said the figure "would have been higher" but the two-week holiday towards the end of the year trimmed selling opportunities for dealers. CAMPI president Elizabeth H. Lee said car sales remained at healthy levels in the Philippines due to the demand from entrepreneurs and overseas Filipinos. This resulted in the domination of commercial vehicles sales, with a 64 percent market share representing 80,023 units, over passenger car sales, at 36 percent or 44,426 units, during the year. Lee said the trend of stronger commercial vehicle sales is expected to continue this year. "This year, competition will be stiff, which may in turn benefit auto buyers. The entrepreneurial trend will likely continue and may get stronger as returning OFWs may be 'forced' to become dual income earners while at the same time, opportunities are likely to crop up amidst any crisis," Lee said, adding that the Philippines is not undergoing a crisis at this time. The government projects a slower economic growth of between 3.7 percent to 4.7 percent for 2009 as the global economic and financial crisis takes its toll on the local front. For its part, CAMPI expects car sales to grow by two to four percent this year, which means it could sell 2,800 to 4,900 units more than the actual 2008 sales. "Although a spill over effect from the global economic turndown is expected, the degree of impact is expected to be relatively less," Lee said. - ABLL, GMANews.TV