Vehicle sales in the Philippines rose 17.2% to 11,636 units in July compared with 9,932 units sold a year earlier, according to the Chamber of Automotive Manufacturers of the Philippines Inc (Campi).
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Passenger car sales rose 32.2% to 4,215, with sales particularly strong for small-engined models as high fuel prices continue to drive demand for more fuel-efficient transport. Commercial vehicle sales rose 10.5% to 7,421 units.
The market’s strong performance comes despite a series of interest rate hikes by the Philippine Central Bank in recent months to 5.75% at present as it attempts to contain inflation and to support the weakening peso. Economic growth has remained strong so far this year, despite double-digit inflation, and the government is forecasting full-year GDP growth at between 5.7-6.6%.
Vehicle sales in the first seven months of the year rose 14.2% to 73,290 units – compared with 64,188 units in the same period last year.
Sales of commercial vehicles rose 14.3% to 48,072 units and sales of dual-purpose vehicles such as light vans, pickups and utility vehicles amounted to close to 32,700 units – or around 45% of total vehicle sales.
Utility vehicle sales alone amounted to 19,715 units – 10.8% higher year-on-year, while passenger car sales rose by 14% to 25,218 units.
Toyota Motor sold 4,205 vehicles in July and 26,414 units in the first seven months of the year, for a market share of 36%. Mitsubishi Motors’ sales in July amounted to 1,503 units and Honda Motor’s 1,194 units.
Despite the expectation of further interest rate hikes in the second half, possibly to 6.75% by the end of the year, CAMPI maintained its 125,000-unit full-year market forecast and expects the second Philippine international motor show in Manila later this month will help stimulate demand.
Tony Pugliese
