Vehicle sales in the Philippines will likely grow at a slower pace of 10 percent to 352,000 units in 2016 after expanding 18 percent to an estimated 320,000 units in 2015.
“That is our initial target. It is possible we will revise that by mid-year,” said Chamber of Automotive Manufacturers of the Philippines Inc. president Rommel Gutierrez told reporters in an interview Friday.
Truck Manufacturers Association president Dante Santos said “other markets that have been growing in the past eight years have already plateaued, ours is just starting.”
Major car companies in the Philippines will introduce new models in 2016 to drive sales and reach the industry target.
“10 percent [growth] is okay, then when start to review figures in June to determine either we underestimate or overestimate our growth forecast,” said Santos.
Both associations said sales would rise steeply in the first two quarters, as since the election season required more transportation logistics, and stabilize in the last two quarters.
The automotive industry will have to contend with a new government as the nation elects a new president in May 2016.
Each new president is expected come up with a mid-year development plan that will be matched with different industry roadmap.
Automotive sales in 2014 totaled 270,000. The groups are optimistic the industry will reach the revised forecast sales of 320,000 units in 2015.
Sales of micro or small cars are expected to contribute heavily to the growth for the current year and until 2016.
Both groups said the niche for small cars was growing fast more of the youth and women opt for the kind of vehicle.
Vehicle sales jumped 29 percent to a record 28,667 units in October from 22,278 units sold a year ago.
Campi and TMA earlier reported in a joint report sales in October also 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 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 expected to hit its sales target of 310,000 units for 2015.