MANILA -- The Chamber of Automotive Manufacturers of the Philippines (CAMPI) disclosed that its member companies have expected a combined drop in sales by 14 percent this year compared to the 2017 figure.
On the sidelines of the 7th Philippine International Motor Show (PIMS) in Pasay City, CAMPI Vice President Santos said members have accepted that the industry's sales performance will fall behind what was achieved in 2017.
CAMPI and Truck Manufacturers Association (TMA) recorded a total of 425,673 unit sales last year.
Santos explained that anticipation of a substantial price increase under the Tax Reform for Acceleration and Inclusion (TRAIN) law at the beginning of the current year had caused many to buy their cars in the latter part of 2017.
The current environment of higher prices of basic goods pushed by higher inflation on food and oil products and increasing interest rates, among others, affected the appetite of consumers on buying vehicles, the CAMPI executive said.
“The market is being affected by these decisions. Rather than going to major purchases, they’d like to absorb first,” said Santos.
“We can’t really debate on this because these are forces beyond our control. Ours is to manufacture or bring in, and supply the demand,” he added.
Despite these challenges in the local industry this year, Santos said the group remains optimistic about the Philippine economy, given its solid macroeconomic fundamentals.
He noted that the group projects that the industry’s performance will soon recover.
Last month, decline in sales of CAMPI and TMA slowed down to 9.7 percent compared to September 2017. The decrease narrowed from August’s year-on-year drop of 14.1 percent and July’s 24.1-percent decrement, which was the group’s largest drop since vehicle sales contracted in February this year.
From January to September this year, sales of vehicle manufacturers declined by 13.8 percent to 261,057 units from 302,869 units in the same period in 2017. (PNA)
