Automotive sales growth in 2016 may slow down to 5 percent to 10 percent after surging 20 percent in 2015.
A senior official of one of the bigger Philippine automotive companies said industry growth might probably “correct” after a fast growth recorded this year.
“There will still be growth, only slower. If you are to review updates, all [data] show that prospects are still good for the next year. A relatively-controlled inflation rate, stable interest rates for auto loans and the continued growth of remittances and the BPO sector provide good signs of growth,” he said.
The automotive industry sector will likely hit the full-year target of 310,000 units before the end of December. Industry sales and target include vehicle imports of authorized car distributor.
The official said the 20-percent sales increase this year was impressive, noting that almost all automotive companies had been registering record performances, especially those with local assembly operations.
Trucks and smaller cars are expected to sustain their sales growth in the next few years, fueled by the construction boom and the expansion of personal transport services like Uber and Grab.
The new law on vehicles prohibiting trucks 15 years and older to ply the roads would also boost sales if strictly implemented, the official said.
He added Filipinos were now capable of buying brand new vehicle models with increasing gross domestic product per capita of $2,900.
“A study says that motorization of a country will kick in once a GDP per capita of $2,500 is achieved. We are now at $2,900, this means that the country now has more people capable of buying new cars. Our purchasing power will still grow,” he said.
Incoming new models are expected to increase the appetite of car buyers.
Vehicle sales jumped 28.7 percent to a record 28,667 units in October from 22,278 units sold a year ago.
The Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association said earlier October topped September’s record sales of 27,045 units by 5.9 percent.
The latest figure brought total vehicle sales in the first 10 months to 234,951 units, or 22 percent higher than 192,005 units sold in the same period in 2014.
“The progress of the economy bodes well for the auto industry. More people can now purchase cars and with relative ease,” said Campi president Rommel Gutierrez earlier.
“With attractive financing options coupled with new model introductions to match customer needs, cars are definitely appealing to new buyers. We are confident to meet our forecast for 2015,” he said.
Gutierrez said given the 10-month tally, the industry was expected to hit its sales target of 310,000 units for 2015.
He said both passenger cars and commercial vehicles posted good performances in October.