New vehicle sales rose 22% in April

By means of Adrian H. Halili, News reporter

NEW VEHICLE SALES rose 22% year-on-year in April amid steady consumer demand, an industry report showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) show that new car sales rose to 37,314 units in April, compared to 30,643 units in the same month last year.

Month on month, car sales fell 0.4% from the 37,474 units sold in March.

CAMPI President Rommel R. Gutierrez said the sector posted “strong” sales this year despite the month-on-month decline.

“On the demand side, there are positive consumer and business competitorsFidentity plus stability in the automotive sector FFinances drove sales,” he said in a statement.

Commercial vehicles accounted for almost three-quarters of sales in April. Sales rose 16.9% to 27,272 units in April, compared to 23,326 units a year ago. Month on month, sales decreased by 0.4%.

Broken down, light commercial vehicle sales rose 10.7% year-on-year to 19,561 units, while Asian commercial vehicle sales rose 47.5% to 6,816 units.

Sales of light trucks and buses fell 29.7% to 491 units, while heavy trucks fell 44.9% to 49 units. Mid-size truck sales rose 40.9% to 355 units in April.

Meanwhile, passenger car sales rose 37.6% to 10,069 units in April, compared to 7,317 units sold in the same month in 2023. Month on month, sales fell 0.57%.

Through the first four months of 2024, new vehicle sales rose 14.8% to 146,920 units, compared to 127,927 units a year ago.

Passenger car sales rose 19.4% to 38,280 units, while commercial vehicle sales grew 13.4% to 108,667 units.

Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp., said the higher auto sales can be attributed to the improved purchasing power of Filipino consumers despite increasedFand high interest rates.

The Bangko Sentral ng Pilipinas (BSP) has kept its key interest rate at a 17-year high of 6.5% since October 2023.

“The lack of mass transportation systems has also contributed to double-digit auto sales growth. As well as increased sales of electric and hybrid vehicles and modernization of transport Fleet, new models, easier ownership conditions like low down payments,” Mr. Ricafort said in a Viber message.

Luis A. Limlingan, chief sales officer of Regina Capital Development Corp., said in a Viber message that consumers expect interest rates to be lowered soon “so they can take advantage of more flexible financing conditions.”

CAMPI’s Mr Gutierrez said the industry expects higher sales of electric vehicles (EVs) this year as the government has cut tariffs on imported hybrid EVs and plug-in hybrid EVs to zero.

The National Economic and Development Authority extended the zero rate earlier this monthFf policy for EVs to also include hybrid EVs, plug-in hybrid EVs, e-motorcycles, e-bicycles, nickel-metal hydride accumulator batteries, e-three-wheelers and quadricycles. Last year, electric vehicles accounted for 2.5% of total industry sales.

Mr. Gutierrez also said that new vehicles are already compatible with the higher biofuel blend, which is expected to be implemented in October.

The Ministry of Energy previously ordered oil companies to increase the coconut biodiesel blend to 3% from October.

Meanwhile, Toyota Motor Philippines Corp. market leader, with sales of 67,580 units in the first four months of the year, up 13.9% from 59,328 units a year ago.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 18.94%, after posting a 19% increase in sales to 27,828 units.

In third place was Ford Motor Company Phils. Inc., whose sales rose 20.1% to 9,688 units.

Rounding the top FThe first were Nissan Philippines, Inc., which saw a 10.2% sales increase to 9,375 units, while Suzuki Phils., Inc. posted a 12.5% ​​sales increase to 6,117 units.

CAMPI set a sales target of 468,300 units for 2024. Last year the sector sold 429,807 units.