Car sales zoom at fastest pace since pandemic

MANILA, Philippines — Vehicle makers posted their highest year-on-year sales hike in April since the coronavirus outbreak, driving total vehicle sales 36 percent higher in the first four months of the year.

A joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA) released yesterday showed sales reached 17,843 units in April, a 13,316 percent increase from the mere 133 units sold in the same month last year.

CAMPI president Rommel Gutierrez said the record year-on-year sales increase in April since the advent of the pandemic was expected after the industry posted its sharpest decline in vehicle sales in the same month last year as strict lockdown measures were imposed.

On a month-on-month basis, vehicle sales in April declined by 14 percent from the 20,702 units sold in March.

Gutierrez attributed the month-on-month drop in sales to the reimposition of stricter quarantine restrictions following the surge in new coronavirus cases amid the reopening of the economy.

“Additionally, tighter bank lending continues to dampen the demand for consumer spending, especially for big-ticket items like auto amid the pandemic. The additional deposit due to safeguard measure is burdensome in itself to consumers and industry alike,” he added.

Provisional safeguard duties amounting to P70,000 for an imported passenger car (PC) and P110,000 for a light commercial vehicle (LCV) from overseas were imposed by the Department of Trade and Industry after it found higher vehicle imports are hurting the domestic motor vehicle manufacturing industry based on its evaluation of a petition filed by the Philippine Metalworkers’ Alliance.

While some CAMPI members locally assemble cars, they also sell imported vehicles.

The provisional safeguard duties have been in place since February and would be in effect for a period of 200 days.

An investigation is being conducted by the Tariff Commission to determine if the safeguard duties should be in place for an extended period.