For the first time in a decade, the Philippine auto industry sold over 100,000 units in 2007 as the economy continued to grow and the business environment remained stable, reports said on Thursday.
The auto industry exceeded its target of 108,000 units as final sales totaled 117,903, the Philippine Star reported, citing a joint statement by the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association.
Growth for this year will be moderate compared to the double digit growth rate of 18.4 percent in 2007, said Elizabeth H. Lee, president of the CAMPI.
"We are still looking at a growth for 2008 with perhaps a more conservative stance at the onset with a five- to seven- percent growth compared to 2007," Lee said.
Last year, the robust performance was credited to the staging of the first ever Philippine International Motorshow, a large lineup of new models introduced from most auto players, and the finality of the Supreme Court decision banning second-hand vehicle importation.
Lee said more models will be introduced this year which in turn will take up most of the sales growth for 2008.
"The industry is seen to keep the momentum of growth in 2008 as well," she said, adding that "growth for 2008 will depend on an increasingly stable market with peso-dollar exchange rate fluctuations kept to a comfortable level."
Lee also said the industry is hoping that government agencies will stick to the strict implementation of the ban on used vehicles. This will certainly have a positive effect on sales as buyers gain greater awareness of the consequences of the ban, she added.
Lee also underscored the importance of the development of new markets like the small- and medium-sized enterprises and the growing middle class. These two segments, according to Lee, will have a great impact on the purchase of vehicles.
"On the whole, 2008 is seen to be another growth year for the industry," she said.
The commercial vehicle (CV) segment will continue to dominate the market with greater emphasis on light commercial vehicles.
Sales of passenger cars are also expected to rise because there is a demand for small and affordable vehicles.
"With the rise in oil prices, diesel-fed vehicles can have a relative advantage in terms of fuel economy," Lee said.
The average monthly sales for last year was higher at 9,825 against only 8,292 in 2006, according to the statement.
Source: Xinhua
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