Car sales up; 2011 targets to be revised

MANILA, Philippines—Vehicle sales in the first four months rose 4.7 percent to 48,109 units from the previous year’s 45,910 units, but the full-year growth forecast of 4-5 percent will have to be revised due to the Japan crisis.

Documents from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association showed that the industry had average sales of 12,027 units a month in the January-April period, still within the sector’s growth forecast for the year.

However, considering the impact of the Japan crisis on the auto industry and not only on the Japanese brands, Campi president Elizabeth Lee said the projected growth figure might not materialize and might have to be revised.

“Currently, we are still within the forecast range. However, this may be revised accordingly as we move forward in the coming months, with greater visibility on the extent of the damage and its lingering effect on local operations,” she said.

The March earthquake in Japan caused a tsunami that leveled villages, left thousands dead and hundreds of businesses crippled. The auto industry was one of those badly affected, considering the length of its supply chain and the need to deliver various parts and components to different parts of Japan and the world.

The local units of Japanese carmakers Toyota Motor Corp., Mitsubishi Motor Corp. and Honda Motor Co. Ltd. all implemented reduced production, by as much as 50 percent, and shortened workweeks. Even Ford Group Philippines cut production. These efforts were initiated to stretch existing key parts inventories while waiting for fresh deliveries from their Japanese suppliers.

“Although some key parts suppliers’ plants have resumed operations, they have yet to operate at normal levels. Hence, demand will continue to outpace supply temporarily, as plants try to ramp up operations to higher levels at the soonest time possible,” Lee said.

During the first four months, commercial vehicle sales inched up 2.8 percent to 31,815 units from the 30,948 units sold in the same period a year ago.

Passenger car sales, on the other hand, rose to 16,294 units from January to April, 8.9 percent better than the previous year’s 14,962 units.

In April alone, industry sales fell 4.5 percent to 11,816 units from the 12,374 units sold in the same month last year.

Toyota Motor Philippines Corp. continued to hold the first position with 18,440 units in sales in the first four months for a 38-percent share of the market. Second was Mitsubishi Motor Philippines Corp., which sold 10,945 vehicles in the same period, or a 23-percent share of the pie.
In a separate statement, Hyundai Auto Resources Inc. reported a 3-percent rise in sales for the January-April period to 6,419 units from the previous year’s 6,251 units. In April alone, sales rose 5 percent to 1,707 units from last year’s 1,679 units.