CAMPI drives up vehicle sales forecast this year

MANILA, Philippines - The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) has raised its forecast for the country’s total vehicle sales to 250,000 units this year from 230,000 units on strong industry sales performance.

 “Last year, the industry soared beyond the 200,000 mark in total vehicle sales- something we have not achieved until today. We are putting our hopes even higher this year as we revise our 2014 forecast to at least 250,000 units, up nine percent over the original 230,000 units announced in January,” CAMPI president Rommel Gutierrez said.

The forecast was revised given the strong growth in sales posted in the past months.

Combined sales of the CAMPI and Truck Manufacturers Association Inc. reached 108,957 units as of the first semester, 24.9 percent higher than the 87,228 units sold in the comparable period last year.

Latest data from another automotive group, the Association of Vehicle Importers and Distributors, Inc. showed it sold 14,929 units in the January to May period, up 16 percent from the 12,898 units in the comparable period a year ago.

Gutierrez said the improving economic conditions are seen to support the growth of the automotive industry.

He also said the growth in total vehicle sales in the country is expected to be sustained in the coming years noting that the CAMPI has developed “Vision 2020” where the group aims to reach the 500,000 mark in the next six years.

“In reaching this target, we are guided by the growing domestic demand for automobiles fueled by a steady growth in income,” he said.

According to Gutierrez, there is a strong potential for local vehicle sales to grow given the country’s population of 100 million which has a vehicle ownership ratio of only 35 per 1,000 population, much lower than other Southeast Asian countries.

“As the Philippines already reached a GDP (gross domestic product) per capita of $2,790 in 2013, higher than the motorization threshold income of $2,500, we are confident that this potential will translate to reality soon,” Gutierrez said.

He also said government intervention will be needed to allow the local automotive industry to participate in the Association of Southeast Asian Nations (ASEAN) economic integration.

 “As far as integration in Asean is concerned, you know Philippines is not an exporting country... Integration in Asean will entail integration of production and distribution as well. Right now, we are just in production. We might need adjustments so we can fully integrate to Asean,” he said.