Philippines Vehicle Sales Will Grow 15% in 2023
January 2023 sales 42% higher than in January 2022.
2022 was not a bad year after all for the Philippine automotive industry. There were very clear signs of recovery. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) reported a total vehicle sales of 352,596 units in 2022, surpassing its sales target of 336,000 units. This is close to the pre-pandemic level of 369,941 units sold in 2019.
CAMPI President Atty. Rommel Gutierrez said, “We are optimistic that the growth will continue this year due to pent-up demand and, we are confident that we will more than hit the 2019 level this entire 2023.”
Combined industry efforts point to a 15% increase in 2023 over 2022 level, expecting to breach the 400,000 mark for the first time in history.
Vehicle sales started on a good footing this year, as CAMPI-TMA members sold 29,499 units in January. This is 42% higher than the 20,765 units sold in January of 2022. The auto industry’s sales performance was driven by potent demand for commercial vehicles and passenger cars. Commercial vehicle sales jumped by 46.8% to 21,993 in January, as sales of light commercial vehicles went up by 40.9% to 16,757 units. Sales of Asian utility vehicles skyrocketed by 87.1% to 4,587 units. Passenger car sales increased by a good 29.8% to 7,506 units in January.
Undeniably, there is still pent-up demand. The supply is improving although there are still many models, particularly the Japanese brands, that are unavailable. All the automakers are confident, however, claiming to have many new models coming this year, so that will really boost sales. “All brands are really preparing for this year’s full recovery,” Atty. Gutierrez said.
Truth be told, the industry is still facing supply challenges arising from the shortage of microchips used in vehicles. Gutierrez asserts further: “For some models yes, there are supply issues, particularly those Japan-sourced models that are really still affected by the shortage of microchips. The auto industry is optimistic of its continued expansion from the demand-side standpoint driven by the growing domestic consumer market. On the other hand, the supply-side challenge(s) are also an important factor that the industry is mindful of as this may hamper the industry growth.”
Growth in vehicle sales is a welcome news also to suppliers of vehicle accessories, after-market products and car-care products like the Space Technology Certified and NASA Hall of Fame Awardee, X-1R’s range of Engine, Fuel and Transmission Treatments.
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