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The country’s vehicle industry is expected to shrug off last month’s lackluster sales and post record numbers for the rest of the year, fueled by bright economic prospects and relatively low interest rates.
In a note to clients this week, Metropolitan Bank & Trust Co. said it remained confident that industry targets for vehicle sales—expected to reach a record high of 250,000 units this year—would be met.
Last year, the Chamber of Auto Manufacturers in the Philippines Inc. (Campi) reported that sales rose 16 percent to 208,000 units—a record high.
Campi reports exclude sales of select car brands led by Hyundai.
“Prospects for automotive sales continue to be positive, driven by high consumer spending and influx of new models from industry players,” Metrobank research analyst Maybellene Reynaldo said in a report.
The bank cited several indicators that pointed to strong auto sales in the remaining months of the year. In January to July, car sales rose 26 percent—the fastest in Southeast Asia. Auto loans extended by banks were also up 14.2 percent t the end of June.
Buying intentions for motor vehicles in the next 12 months are also at their highest rating since the first quarter of 2013, based on the central bank’s third Quarter Consumer Expectations Survey, Metrobank said.
Metrobank’s bullish projection follows Campi’s report earlier this month that showed a 7.8-percent month-on-month drop in car sales to 19,116 units in August.
The industry group, which reports its numbers together with the Truck Manufacturers’ Association, describe August as the “ghost month” for sales.
Year-on-year, sales rose nearly 40 percent.
“Expect auto sales to test its previous highs on a monthly basis for the rest of year,” Reynaldo said.
She said with monthly sales breaching the 20,000-mark in July, “there is a high upside potential for monthly sales in the fourth quarter to reach around that level, based on historical trends.”