VEHICLE SALES in the Philippines surged by 8.5% year over year in November, primarily propelled by the demand for commercial vehicles, according to an industry report.
A collaborative report from the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) indicated that vehicle sales increased to 40,898 units in November from 37,683 units in the corresponding month in 2023.
On a month-to-month basis, vehicle sales rose by 2.2% from the 40,003 units sold in October.
Sales of commercial vehicles, which constituted 76% of the industry’s overall sales, soared by 10.5% to 31,062 units in November compared to 28,114 units from the previous year.
Month on month, commercial vehicle sales grew by 3.7% from 29,959 units in October.
Specifically, light commercial vehicle sales increased by 3.2% year on year to 22,115 units, while sales of Asian utility vehicles (AUV) surged by 40.7% to 7,890 units, and sales of light-duty trucks and buses expanded by 2.5% to 665 units.
Conversely, sales of medium-duty trucks and buses decreased by 4.8% to 318 units, whereas sales of heavy trucks fell by 22.1% to 74 units.
In contrast, sales of passenger cars, which represented one-quarter of the industry’s total, increased by 2.8% to 9,836 units in November from 9,569 units a year ago.
On a month-to-month comparison, passenger car sales dipped by 2.07% from 10,044 units sold in October.
For the first 11 months of the year, vehicle sales rose by 8.8% to 425,208 units from 390,654 units during the same period in 2023.
“This increase is evident in the market share distribution, where passenger cars composed 26.02% of the market with 110,645 units sold, reflecting an 11% rise from the previous year,” stated CAMPI-TMA.
Sales of commercial vehicles experienced an 8.1% increase to 314,563 units in the January-to-November timeframe compared to 290,989 units in the same duration in 2023, largely influenced by AUV sales.
CAMPI-TMA highlighted the AUV segment “demonstrated extraordinary growth” with year-to-date sales totaling 74,989 units as of the end of November, an increase of 37.3% year on year.
Light commercial vehicles, classified under Category II, rose by 1.4% to 229,313 units in the 11-month period.
Sales of heavy-duty trucks and buses plummeted by 33.5% to 638 units by the end of November.
Chief Economist Michael L. Ricafort from Rizal Commercial Banking Corp. stated that the annual growth in vehicle sales for November serves as a positive sign for the economic development in the Philippines.
“Local vehicle sales and production growth rates have consistently exceeded GDP (gross domestic product) growth rates, as evidenced in recent months… (These) are encouraging indicators for the ongoing growth and recovery of the Philippine economy,” Mr. Ricafort conveyed in a Viber message.
“The inadequacy of a mass transport system across many regions of the country has heightened the necessity for more Filipinos to acquire vehicles, with increased variety of brands and models available amid growing competition from Asian or global automakers,” he added.
During the January-to-November timeframe, Toyota Motor Philippines Corp. maintained its position as the market leader with a 46.51% share. Toyota’s sales surged by 9.6% to 197,756 units by the end of November from 180,480 units the previous year.
Mitsubishi Motors Philippines Corp. secured the second position with a market share of 19.14%. Mitsubishi vehicle sales rose by 13.3% during the first 11 months to 81,401 units from 71,833 units.
Ford Motor Co. Phils., Inc. ranked third despite a 9.9% drop in sales to 25,770 units by the end of November from 28,586 units the year before. Ford’s sales represented 6.06% of the industry.
Completing the top five were Nissan Philippines, Inc., which saw sales decrease by 0.9% to 24,516 units, while Suzuki Phils., Inc. recorded an 11% increase in sales to 18,515 units. Nissan held a market share of 5.77%, while Suzuki accounted for 4.35%.
Data from CAMPI-TMA also indicated that 16 out of 31 firms experienced a downturn in sales by the end of November.
CAMPI had previously established a target of 500,000 units sold for 2024, and if realized, this would represent a 16.3% increase from last year’s 429,807 units sold, marking the highest sales for the vehicle industry to date. — A.H.Halili
