Auto sales drop for ninth straight month in October

SALES of motor vehicles in the country fell annually for the ninth straight month in October, even as the latest tally was an increase from September, according to data of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) released on Tuesday.
Total vehicle sales dropped 9.2% to 33,150 units in October from 36,511 a year ago, though the latest tally was 6.5% more than September’s 31,116.

A press statement accompanying the data release focused on the month-on-month increase, with CAMPI president Rommel R. Gutierrez attributing the rise to “market promotions and availability of new model units in line with the recently concluded 7^th Philippine International Motor Show (PIMS)”.
“We remain optimistic that sales growth will be sustained in November, as we expect more sales from PIMS will be delivered this month.”
The nine straight months of year-on-year declines, however, come in the wake of the increase in automobile excise taxes that took effect in January — a month that had otherwise seen a four-percent increase from the past year — as well as amid tighter credit conditions after the central bank started raising benchmark interest rates, totalling 150 basis points so far since May.
Weighing heavily on sales in October were passenger cars, whose sales fell by 19.2% to 9,444 units from 11,686 a year ago, though roughly flat from September.
Sales of commercial vehicles slipped by 4.5% to 23,706 units from the year-ago 24,825, though 9.4% more than September’s 21,675. Asian utility vehicle sales were halved year-on-year to 3,409 vehicles from 6,858, though 16.5% more than September’s 2,926. Light truck sales dropped 10.9% to 721 from 809 a year ago, but surged by 26.3% from September’s 571 vehicles. Light commercial vehicle sales, however, grew 14.4% to 18,896 vehicles in October from 16,521 units a year ago, and grew 7.2% from 17,626 units in September.
October brought year-to-date industry sales to 294,207, 13.3% down from 339,380 in 2017’s comparable 10 months. Broken down by major components, the same comparative 10 months saw passenger car sales drop a fifth to 90,522 — making up a third of the total — and commercial vehicle sales fall by 9.9% to 203,685, accounting for 69.23%.
Year-to-date industry data show Toyota Motors Philippines Corp. topping the list as of October with 124,329 vehicles sold — accounting for 42.26% of the total — down 16.7%. In second place was Mitsubishi Motors Philippines Corp. with 56,592 units sold — accounting for 19.24% — down 5.3%. Third came Nissan Philippines, Inc. with 28,210 vehicles sold — making up 9.59% — up 44.8%. Fourth was Ford Motor Company Philippines, Inc. with 19,741 automobiles sold — making up 6.71% — down 30.9%, while Honda Cars Philippines, Inc. took fifth place with 19,482 units sold — accounting for 6.62% of the industry total — down 17.8%.