Economy

PH Automotive Industry Anticipates 10-15% Sales Growth in 2023

Published

2 years ago

February 16, 2023

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The Philippine Chamber of Automotive Manufacturers Inc. (CAMPI) projects a 10 to 15 percent growth in the country’s automotive industry this year, indicating a potential rebound from the pandemic’s effects.

The rising demand for new vehicles and an improving supply are said to be contributing to this positive outlook. The latest data from CAMPI shows a 42.1 percent increase in new motor vehicle sales in January 2023 compared to the same period last year.

With these indicators, CAMPI President Rommel Gutierrez is confident that the sales growth will continue throughout 2023.

The commercial vehicle segment recorded the highest growth in January, with a 46.8 percent increase in sales. This accounts for 74.56 percent of the total vehicle sales. Passenger vehicle sales also grew by 29.8 percent. Toyota Motor Philippines Corp. remained the market leader in January with a 45.52 percent share, followed by Mitsubishi Motors Philippines Corp. with a 17.05 percent share, and Ford Motor Co. Phils. Inc. with a 7.14 percent share.

Despite the positive outlook, Gutierrez acknowledges that supply-side challenges may hamper the industry’s growth. However, he said that the automotive brands are preparing for a full recovery this year, with many new models set to be released.

The pre-pandemic sales of vehicles in 2019 were at around 360,000 units, and Gutierrez said that the current sales level is at 350,000, which is a small gap. He expressed confidence that the industry will more than hit the 2019 level this year.

The automotive industry is an important sector in the Philippine economy, contributing to job creation and economic growth. The government has also been pushing for the development of electric vehicles to reduce the country’s dependence on imported oil and lower carbon emissions.

Overall, the expected growth in vehicle sales this year is a positive development for the Philippine economy, indicating that the country is on the path to recovery from the pandemic’s impact. (GFB)