Auto firms report slow growth in first 4 months
FE Perez-Agudo
Almost three months since Japan suffered a 9.0-magnitude earthquake, a tsunami, and a near nuclear disaster, inventories of crucial car supplies—from computer chips to paint pigments—are still not enough as Japanese factories that make them are not yet running at full capacity.
This has made quite an impact on the auto industry as car sales grew just 1.5 percent in the first five months to 59,022 units, from 58,176 units in the same period last year.
According to Chamber of Automotive Manufacturers of the Philippines Inc. (Campi)—whose members are mostly Japanese automakers—sales in May alone plunged by 11 percent to 10,913 units, from the previous year’s 12,266 units.
Campi president Elizabeth Lee attributed the drop in sales from the damaged plants that manufacture crucial auto parts and components as well as the airports used in transporting these parts to the country.
To cope with this development, local assemblers were forced to cut production to ensure that the parts in their inventory last until supply from Japan normalizes.
Opposite
The Campi result is different from the report submitted by the Association of Vehicle Importers and Distributors, Inc. (Avid) whose members are non-Japanese automakers.
Avid bared a 4 percent growth from a year ago.
“The 4 percent growth in Avid’s sales in May against total industry’s decline demonstrates the strategic advantages of our global supply platforms and brand management strategies to mitigate the risks of external crisis, like Japan’s disaster, and consumer vulnerability to economic uncertainties. We remain positive about the economic outlook for the year ahead and the resiliency of the domestic market to support our sales goals,” said Avid president Maria Fe Perez-Agudo, who is also president and CEO of Hyundai Asia Resources, Inc.
Avid sold a total of 1,952 units in May. This brings sales in the first five months of the year to 9,658 units.
In terms of market share, Avid accounts for 15 percent of the total market for May.
Still on top
ELIZABETH Lee
Toyota Motor Philippines Corp. is still on top after selling 21,468 units in the first five months enjoying 36.4-percent share of the market.
Mitsubishi Motors Philippines Corp., which claimed second place with sales reaching 14,062 units (a market share of 23.8 percent), posted better results in May after registering 3,117 units sold, slightly ahead of what perennial leader Toyota’s 3,017 units sold in May.
Non-Campi member Hyundai Asia Resources Inc. (Hari), which posted a 3-percent sales growth of 8,062 units in the first five months of the year, sold 1,552 units in May (ahead of Honda Cars Philippines’ figure of 1,115 units sold in May).
Lee said they expect the slow growth to last until June but hope that by July sales would slowly recover.
Campi projected a sales growth of 4-5 percent for the industry this year.
