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The Christmas season is a time of increased consumer spending in the Philippines, and businesses are following suit with the festive spirit with initiatives to attract more customers and more purchases. This trend is especially true for the automotive industry, where strategic marketing and sales efforts can benefit from the holiday season.

The initial surge in automotive purchases during the holiday season is frequently attributed to the financial capacity of Filipinos. With Christmas bonuses being distributed, a significant number of individuals enjoy an increase in their disposable income, making it an ideal opportunity to invest in a new vehicle.

Despite the economic challenges the country faces, such as interest rate hikes and slow economic growth, the demand for vehicles has increased remarkably.

According to a report published by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA), the Philippine new vehicle market rebounded strongly every December of the year.

In 2021, December recorded the highest number of sales since the COVID-19 pandemic started. A total of 27,846 units were sold, slightly increasing the 27,596 units sold in December 2020. The slight increase in the numbers indicated a slow but stable economic recovery and a resurgence in consumer confidence within the market.

Similarly, December recorded the highest monthly performance in 2022, with a total of 37,259 units sold, rising to 33.8% year-on-year. These figures include 28,645 sales of commercial vehicles and 8,614 sales of passenger vehicles.

As the industry navigates through the first seven months of 2023, the upward trajectory in vehicle sales continues, maintaining a double-digit growth rate. Vehicle sales have experienced a 31.1% surge when compared to the same period last year. The sustained increase indicates a growing resilience in the market and a positive response from consumers.

Looking ahead to December 2023, industry experts are anticipating another strong performance that builds on the success of previous years. The positive trend in the first seven months of the year is expected to continue, leading to a strong finish this year.

All these figures indicate that the Philippine automotive industry is continuously growing, with Christmas sales increasing year-on-year.

Strategic timing

Car manufacturers often release new models during the Christmas season to take advantage of increased consumer spending.

In addition, automakers often launch special editions of their popular car models during “-ber months.” These limited-edition vehicles are created to commemorate the holiday season and create a sense of exclusivity. Often, these vehicles feature unique design elements, upgraded features, and even performance enhancements.

Automakers also showcase these special models to attract the attention of consumers, giving them a glimpse of what’s to come in terms of innovation and design in the new year.

The launch of these new cars not only boosts sales but also creates excitement for the upcoming year. The timing enables them to grab the attention of potential buyers looking for a special gift or considering a big purchase as the year approaches.

On the other hand, dealerships strategically sell off their current inventory to make space for the upcoming models slated for the following year. This practice not only helps dealerships keep an updated lineup but also enables them to offer attractive deals to clear out existing stock.

Dealerships often try to attract customers by offering discounts, rebates, and special financing rates. Manufacturers also work with dealerships to provide factory incentives, resulting in additional savings for consumers.

The mutually beneficial arrangement of the strategy helps dealerships clear inventory while also allowing customers to purchase a new vehicle at a significantly reduced cost.

Several dealerships host year-end clearance events and special promotions to increase the excitement. These events attract potential buyers with promises of exclusive discounts and additional perks.

Limited-time offers and bundled packages, such as free maintenance plans or extended warranties, make the deal more enticing for consumers who are considering a purchase.

Exclusive discounts and promotions

The holiday brings more than just gifts and feasts as several dealerships strategically offer special discounts to attract potential buyers.

Car sellers in the Philippines are leveraging the festive spirit to create a sense of urgency and excitement. For instance, car manufacturers take advantage of the opportunity to offer discounts and incentives.

Dealerships provide Christmas coupons and other holiday-themed promotions to make the car-buying experience more appealing to customers. Some may offer free accessories, discounted packages, and aftermarket support to sweeten the deal.

In addition, showrooms undergo festive transformations during the Christmas season, with Christmas trees, twinkling lights, and bows adorning the featured car models. Test drives may also come complete with complimentary seasonal refreshments and sometimes even a surprise gift for those who make a purchase.

Automotive companies are also extending their holiday-themed campaigns to social media, online advertising, and even virtual showrooms. Interactive online experiences, virtual test drives, and personalized holiday messages from dealerships contribute to a comprehensive and engaging online presence.

Family-centric holiday

Filipinos are known for their strong family-centric culture, and this is especially evident during the Christmas season. Since extended families frequently live in various parts of the city or even across islands, the challenge of gathering together becomes a logistical obstacle. Hence, family transportation is considered important by many.

In a study published in Applied Energy journal in 2020, private vehicles were responsible for 71.3% of vehicle trips in Metro Manila, highlighting the significance of personal transportation for families in urban settings.

Understanding the importance of Christmas and family-centric activities for Filipinos, automotive dealerships focus on providing vehicles that cater to the needs of families, such as spacious and comfortable cars, vehicles with advanced safety features, and those suitable for long drives and family outings.

Family-friendly deals are common, such as discounts on larger vehicles or bundled accessories that cater to the needs of those with children. The idea is to position the purchase of a new vehicle as a family-oriented decision, aligning with the values of the season.

Family transportation goes beyond just logistics as it symbolizes the dedication to keeping strong family bonds and the realization that the true essence of Christmas lies in the company of loved ones. — Mhicole A. Moral

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