Vehicle sales down 4% as of July on Japan concerns

The effects of the Japan crisis continued to linger in the auto industry, as sales dropped 4 percent in the first seven months to 81,550 units, from 84,905 units in the same period last year.

Data from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association showed that sales actually perked up in July vis-a-vis June, climbing to 11,550 units from 10,978 units.

In a statement issued Monday, Campi said this slight improvement in July could be attributed to the delivery of back orders, introduction of new models and aggressive promotions of local car dealers.

However, on a year-on-year basis, July sales were 16.4 percent lower, as the number of vehicles sold in the same month last year came up to 13,784 units.

“Despite the residual effect of the supply limitation from Japan, which was reflected in the year-to-date decline of 4 percent, the automotive industry remained focused on its efforts to perk up the market and cope with the demand. Such efforts reflect the confidence of the industry that this temporary supply situation would come to pass soon,” the group said.

Sales of commercial vehicles, which accounted for the bulk of overall sales, slipped 3.8 percent to 54,286 units in the January-July period, from 56,451 units.

Passenger car sales, on the other hand, dropped even faster than the industry decline at 4.2 percent to 27,264 units, from the previous year’s 28,454.

Despite these developments, Campi is yet to give a revised growth target for the year.

“The auto industry is constantly assessing its sales projection for 2011, taking into account the latest performance and other external factors that would have an impact on the market,” the group said.

Before the Japan earthquake, tsunami and nuclear crisis hit, Campi had projected a growth of 4-5 percent for the year.

In the first seven months, Toyota Motor Philippines Corp. continued to hold the top spot, with sales reaching 29,358 units for a 36-percent share of the market.

In second place was Mitsubishi Motors Philippines Corp. with a market share of 24.2 percent, on sales of 19,705 units. Honda Cars Philippines Inc. was a far third, registering 7,992 units in sales for a 9.8-percent share of the pie.