After 3 mos. of growth, auto sales slump 12.8% in Aug.

MANILA: While the industry has significantly recovered compared to the horrendous 133 units sold last April by member companies of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA), the impact of the so-called new normal is rearing its ugly head anew.

The latest joint report of CAMPI and TMA revealed that total vehicle sales in August recorded a 12.8% decline from to 17,906 units in August from 20,542 last July.

In a release, CAMPI President Atty. Rommel Gutierrez said the sales decrease may be attributed the low business and consumer confidence amid the general economic slowdown. “Spending remains a challenge especially for big-ticket items such as cars,” said Atty. Gutierrez. “This has resulted in another auto sales decline.”

Perennial leader Toyota Motor Philippines Corporation (TMP) continued to pace total industry sales last month with 8,044 units sold, cornering 44.92% of the market. Still, this figure represents a 8.9% dip month-on-month, as TMP had sold 8,833 units in July. Compared to the August 2019 total (13,083), TMP sales last month were down 38.5%.

Completing the top five overall in August 2020 (in order) are: Mitsubishi Motors Philippines Corporation (2,621 units [down 16.8%>, 14.64% share); Nissan Philippines, Inc. (1,881 units [down 11%>, 10.5% share); Suzuki Philippines, Inc. (1,345 units [down 24.4%>, 7.51% share); and Ford Motor Company Philippines, Inc. (1,233 units [down 3.5%>, 6.89% share).

Year-on-year, industry sales went down by 39.5% from 29,599 units sold in August last year; year-to-date total is 123,489 – a 47.6% drop versus the same period in 2019.

“Economic recovery can be a gauge of the industry’s future performance, but it also depends on the policy environment. Any restrictive policies such as safeguard duty will only limit the industry’s capability to navigate the current crisis,” added Atty. Gutierrez.

The auto group said that the Department of Trade and Industry (DTI) “is conducting a safeguard investigation on imported automobiles following a petition filed by the Philippine Metalworkers Association that pre-dates the COVID-19 pandemic,” yet expressed confidence that the government agency “will consider the impact of the pandemic on auto industry recovery.”

Last year, the Philippine Metalworkers Association (PMA) asked the DTI to rule on whether “a surge in automotive imports is causing injury to the domestic industry,” according to a BusinessWorld report.

CAMPI and TMA said that auto companies are resorting to “aggressive promotions to boost sales and achieve (the) revised sales forecast of 240,000 units in 2020.” Stressed Atty. Gutierrez: “Our objective is to achieve if not outperform this new target. Otherwise, recovery will be even more difficult.”

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