Consumer, biz confidence, financing back 22% car sales growth in April

MANILA – Sales of locally assembled vehicles in April increased by 21.8 percent to 37,314 units from 30,643 units in the same month last year.

The joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) released on Wednesday showed that sales of both passenger cars and commercial vehicles supported the overall industry growth in the previous month.

“On the demand side, positive consumer and business confidence plus stability in automotive finance boosted sales,” CAMPI president Rommel Gutierrez said.

Passenger cars sold 10,069 units in April, 37.6 percent higher than sales of 7,317 units in the same month last year.

Sales of commercial vehicles, on the other hand, rose 16.9 percent to 27,272 units from 23,326 units year on year.

For the first four months of the year, sales of vehicles that were assembled in the country increased by 14.8 percent to 146,920 units from 127,927 units from January to April 2023.

Over the same period, sales of passenger cars went up by 19.4 percent to 38,280 from 32,070, while commercial vehicle sales grew 13.4 percent to 108,667 units from 95,857 units.

Meanwhile, CAMPI welcomed the extension and expansion of Executive Order (EO) 12, which now gives zero tariff to hybrid electric vehicles and plug-in HEVs.

“CAMPI is expecting improvement in EV sales ratio this year, considering EO 12 support. In 2023, the combined EV sales (were) only 2.5 percent of total sales,” Gutierrez said.

He also noted that with the Department of Energy’s implementation of the increased biofuel blends starting October this year, new vehicles are already compatible with B3 biodiesel.

“It is part of the global strategy of OEMs (original equipment manufacturers), and along with other carbon neutrality and electrified options, it will eventually come to the Philippines,” Gutierrez said. (PNA)