The local automotive industry is poised for double-digit growth this year as demand gets back on track, according to a report published by Fitch Solutions Country Risk and Industry Research.
It said car sales in the Philippines were expected to expand by 21.5 percent from a low base last year on demand recovery and the introduction of new models and variants.
Fitch Solutions also referred to the assessment of data from the Association of Southeast Asian Nations Automotive Federation.
It said local commercial vehicle sales would likely increase by 23 percent in 2021 and 2022, while passenger vehicle sales would grow by 18 percent on the back of the government’s infrastructure program and the roll out of roads and bridges.
The Car Manufacturers Association of the Philippines and the Truck Manufacturers Association earlier reported that vehicle sales fell 39.5 percent in 2020 and came up 7-percent below industry target for the year at 240,000 units.
Broken down, commercial vehicle sales in the country posted a contraction of 40.9 percent while passenger car sales showed a decline of 36.2 percent last year.
Meanwhile, imported vehicle sales posted a 41 percent contraction, according to the Association of Vehicle Importers and Distributors. Imported light commercial vehicle sales saw a 37.6-percent decrease while imported passenger car sales registered a 46-percent decline.
An insurance company said that despite the rosy outlook for car sales this year, car owners should watch out for the risks involved with owning a vehicle. Stronger and more frequent typhoons, destructive floods, auto theft, or road accidents should be taken into account if one has a car or is planning to own one, it said.
Malayan Insurance Co. Inc., a comprehensive motorcar insurance, said vehicles should be equipped with compulsory third-party liability, own damage and theft, voluntary third-party liability on bodily injury and property damage, and auto personal accident insurance. It should also cover damage from acts of nature, loss of use, strikes, riots, and civil commotions, it said.
Car insurance is expected to protect the vehicle owner from financial loss arising from total loss or damage. It will give them peace of mind knowing that their vehicles are insured for its full value when collision or overturning arises, the insurer said.
Malayan Insurance, a leading non-life insurance company, and is a member of the Yuchengco Group of Companies.