Connect with us

Hi, what are you looking for?

Economy

Car sales show hint of recovery in January

Car sales slipped by 1.4% in January, industry data showed. — PHILIPPINE STAR/MICHAEL VARCAS

THE AUTO INDUSTRY is showing hints of recovery, as car sales in January dipped by 1.4% year on year, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported on Thursday.

The joint report said that sales fell to 23,380 units in January, from 23,723 in the same month in 2020, as passenger car sales growth failed to offset the continued drop in commercial vehicle sales.

In a statement, CAMPI said the slight year-on-year decline in January sales was a “positive sign” that the industry was slowly recovering.

Car sales slumped by 39.5% to 223,793 units in 2020 compared with the previous year after restrictions declared to contain pandemic lowered demand. Sales fell by as much as 99% at the height of the strict lockdown in April.

But January 2021 sales were still 15.3% lower than December sales, which stood at 27,596 units.

To recall, sales in January last year declined by almost 12% after manufacturing plants and dealerships in Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) temporarily stopped operations due to the Taal Volcano eruption.

CAMPI President Rommel R. Gutierrez said the industry is cautiously optimistic.

“The pandemic still poses a challenge to the automotive industry,” he said in a statement. “We are also monitoring how the market will react with the imposition of the provisional safeguard duties starting February, which could potentially impact on the prices of imported motor vehicles.”

The Trade department slapped duties on imported cars to protect local industries after its investigation found a link between a surge in imports and the decline in local employment. Industry groups like CAMPI criticized the move, saying that it would impede auto recovery in the country.

Commercial vehicle sales, which account for 68.8% of the market, slipped 6.4% to 16,085 units in January. Broken down, sales of light commercial vehicles dropped 11.9% to 12,318 units and light trucks sales fell 8.8% to 333 units.

Asian utility vehicle sales climbed 25.8% to 3,118 units.

On the other hand, passenger car sales rose 11.5% to 7,295 vehicles.

Toyota Motors Philippines Corp. (TMP) continued to have the largest market share at 46.28% after selling 10,820 units in January. Mitsubishi Motors Corp. followed with 3,518 units sold, representing 15.05% market share, while Nissan Philippines, Inc. sold 2,321 units, representing 9.93% market share.

Nissan Philippines plants to shut its Almera assembly in Laguna next month, and will continue to sell to the country through its regional network.

Nissan said that the closure is not related to the safeguard duties or the pandemic, but is part of a global restructuring plan announced last year. — Jenina P. Ibañez

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A Cotswold-based authentic Italian food business set up by a couple who initially dreamed of sharing the classic flavours of Italy with the local...

Economy

Filinvest Land, Inc. (FLI), one of the country’s largest real estate developers, reported P4.31 billion in revenues and other income for the first quarter...

Investing

Tesco is to hand pig farmers £6.6m in additional support, taking the total to £10m, after warnings that a slew of producers could go...

Investing

Elon Musk has suggested that he could seek to pay a lower price for Twitter, as the social media company’s would-be owner expressed further...

Investing

Tens of thousands of apprenticeships could be created and hundreds of millions of pounds saved if the flawed apprenticeships levy were reformed, according to...

Economy

The man accused of killing a doctor and wounding five other people in a shooting at a Taiwanese-American church banquet in California methodically planned the attack because he was upset over Chinese-Taiwanese tensions,...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.