Car sales slows in August

MANILA, Philippines - The dreaded ghost month took its toll on the country’s local automotive industry, scaring off vehicle sales and sending it lower compared to the previous month.

In a joint report released yesterday, the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Truck Manufacturers Association (TMA) said vehicle sales slowed six percent in August to 23,181 units from July’s 24,569 units.

Both CAMPI and TMA attributed the decline to seasonality.

 “Most categories were affected by the seasonal decline. The decline is not surprising considering that August, also known as the ghost month, traditionally produces lower sales,” CAMPI president Rommel Gutierrez said.

Despite the month-on-month drop, vehicle sales managed to grow 21 percent when compared to the 19,116 units sold during the same month last year.

Volume of vehicles sold in the first eight months of year also zoomed 20.4 percent to 179,215 units from 148,803 units in the January to August period last year.

The joint report said the passenger car segment was the only sector that performed well in August with 10,334 units sold, an increase of a little over 100 units from 10,221 units sold in July.

The slight growth was attributed to new sub-compact car introductions, continuous marketing efforts, and attractive financing programs of several companies.

“The passenger car category registered an increase in sales because of the sub-compact cars that are appealing to most new buyers whose main concern is improved mobility. The more efficient smaller sub-compact cars occupy smaller space and contribute to the demand for greater mobility in the absence of a more efficient mass transport system,” Gutierrez said.

Sales of the commercial vehicle division, meanwhile, dropped nearly 11 percent across commercial vehicle category I (AUVs), light utility, and heavy duty vehicles.