Car sales could reach a record 500,000 by 2024 – CAMPI

By means of Justine Irish D. Table, Reporter

SALE OF NEW VEHICLES could be possible reached the 500,000 mark this year, amid more launches and double-digit sales growth in the first half, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).

“For 2024, we have set a conservative target of 468,300 units sold. However, with the excitement and momentum to make up for the Philippine International Motor Show (PIMS), we are optimistic about surpassing this target and potentially reaching the 500,000 unit mark,” said CAMPI President Rommel R. Gutierrez Monday at a news conference.

If achieved, this will be the highest annual sales in the industry to date and represent a 16.3% increase from the 429,807 units sold in 2023.

Mr Gutierrez said the sector had seen unexpectedly strong sales in the first half of the year.

“It is a very good sign that the sector is really gaining momentum. So we hope that this will really continue, at least in the second half, and give us a basis for a better projection next year,” he added.

He noted that historically, car sales pick up in the second half, especially in the months leading up to December.

The latest joint report from CAMPI and the Truck Manufacturers Association shows that car sales rose 10.9% to 265,610 units in the January to July period, compared to 239,501 last year.

Commercial vehicle sales rose 8.7% to 194,812, while passenger car sales grew 17.3% to 70,798.

Toyota Motor Philippines (TMP), which accounted for nearly half or 46.21% of total industry sales in the seven-month period, is conFI don’t know if the sector has achieved its turnover target this year.

“We as a whole are quite controversialFI am confident that we will reach the milestone size for market growth this year,” said TMP President Masando Hashimoto.

“Maybe one of the reasons is the healthy growth of Ffinancing or the introduction of new car models to the market. There are several factors, but we are all very confident in this year’s target,” he added.

Mr. Gutierrez said sales in the provinces, especially in Region III and Region IV, have been growing. Provincial turnover now represents 60% of the sector’s total turnover.

“We, the distributors, understand that Metro Manila is already busy. That is why the dealers are mainly in the provinces because if you have a dealer there, it encourages people to buy cars,” he said.

However, Mr Gutierrez said the sector’s outlook could still be affected by potential supply chain disruptions, inconsistent policies and the exchange rate.

“I think the offering has improved significantly, but it remains a challenge. In terms of government policy, we had some uncertainties in the legislation, and we are watching them closely,” he said.

The industry is monitoring the progress of a bill that would include the elimination of the excise tax exemption for pickup trucks, Mr. Gutierrez said.

“This affects the planning, and in fact we have been monitoring this since last year. The uncertainty really matters negatively because even stocks are on the schedule,” he said.

The Treasury Department is pushing to eliminate the excise tax exemption for pickup trucks under the Acceleration and Inclusion Tax Reform Act.

“Inconsistent government policies have always been a problem, not just in the auto industry, but even in other sectors,” Gutierrez said.

Mr. Hashimoto said the challenge is to create a sustainable business environment that will support automotive manufacturing in the Philippines.

“This is not a short-term challenge, but if you look at long-term industrial growth… this is really critical for everyone, especially Toyota,” he said.