By Beatriz Marie D. Cruz, Senior Reporter
PHILIPPINE AUTOMOTIVE SALES slumped to a four-month low in August, as weather disruptions and volatile oil prices weighed on demand, according to an industry report.
However, electric vehicle (EV) sales surged during the month, reflecting Filipinos’ sustained interest in clean energy transport.
In a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA), total vehicle sales fell by 18.1% to 29,611 units in August from the 36,174 units sold in the same month last year. This was the lowest monthly vehicle sales since April when 27,001 units were sold.
Month on month, total industry sales also dropped by 20.7% from the 37,319 units sold in July.
“August new vehicle sales were affected by severe weather as dealership operations and consumer activities were disrupted,” CAMPI said in a statement.
Parts of Luzon were affected by heavy rains and flooding after several tropical cyclones enhanced the southwest monsoon during the month. This led to several class and work suspensions in August.
CAMPI President Jose Maria M. Atienza said he remains optimistic that auto sales will recover by yearend.
“The August dip appears to be a short-term disruption rather than a reversal of market momentum,” he said.
Including other industry data, total vehicle sales reached 34,390 units in August, according to the report.
CAMPI-TMA data showed that passenger car sales declined by 10.6% to 6,784 units in August from the 7,591 units sold last year. It likewise dropped by 15.8% from 8,056 units sold in July.
Commercial vehicle sales also slid by 20.1% to 22,827 units from 28,583 units sold a year ago. Month on month, sales dropped by 22% from the 29,263 units sold in July.
Broken down, sales of light commercial vehicles fell by 16.5% year on year to 17,413, while Asian utility vehicle sales went down by 29.7% to 4,809 units.
Light-duty truck sales also declined by 31.9% to 378 units in August, while medium-duty truck sales dropped by 29.4% to 197 units.
Sales of heavy-duty trucks fell by 47.4% to 30 units in August.
In the first eight months of the year, total industry sales declined by 11.1% to 271,336 units from 305,381 units a year ago.
Including data from non-CAMPI and TMA members, total industry sales reached 300,550 units as of end-August.
Passenger car sales slipped by 10.3% to 55,030 units, while commercial vehicle sales fell by 11.4% to 216,306 units.
Sought for comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the persistently high oil prices caused by the Middle East war continue to hurt vehicle demand.
“The higher fuel prices that led to cost-cutting measures by consumers and businesses amid lower spending power weighed on vehicle sales,” he said in a Viber message.
Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., attributed the sharp decline in vehicle sales with consumers’ sustained hesitation to make big-ticket purchases.
“Household budgets are still under pressure, and buyers appear to be prioritizing essential spending over discretionary items such as vehicles,” he said in a Viber message. “Some businesses may also be delaying fleet expansion amid uncertainty over the economic outlook.
Mr. Ravelas said auto sales could improve in the coming months as car dealers hold year-end promotions. “However, market recovery is likely to be gradual rather than strong.”
DEMAND FOR EVs
Meanwhile, the electrified vehicle segment continued to see strong demand in August.
“The continued growth in xEV (total industry) adoption highlights the strong potential of the market,” Mr. Atienza said.
In August, xEV sales more than tripled to 7,066 units from 2,244 units sold last year. The segment includes battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV).
Month on month, xEV sales dipped by 0.3% from the 7,089 units sold in July.
In the January-to-August period, xEV sales surged by 146.2% to 45,403 units from 18,439 units sold last year.
xEV sales, including other industry data, reached 74,600 year to date, CAMPI said.
HEVs, which accounted for 42.46% of EV sales in August, rose by 131.7% to 3,000 units, bringing its year-to-date sales 62.9% higher to 23,764 units.
Sales of BEVs surged by 270.5% to 2,449 units in August from 661 units sold last year, while PHEV sales jumped by 461.5% to 1,617 units.
In the eight-month period, BEV sales soared by 293% to 12,883 units, while PHEV sales skyrocketed by 1,420.1% to 8,756 units.
Mr. Ricafort said the growing presence of EV players in the country reflected strong demand for electrified transport.
Toyota Motor Philippines Corp. remained a market leader as of end-August despite the 8.9% slip in sales to 133,300 units.
Mitsubishi Motors Philippines Corp. ranked second, despite a 20.3% drop in sales to 46,162 units as of end-August.
Suzuki Phils, Inc. ranked third even as its end-August sales fell by 15.3% to 12,301 units.
Completing the top five were Ford Motor Company Phils., Inc., which recorded a 36.3% drop in sales to 9,517 units, and Honda Cars Philippines, Inc., which saw a 17.8% decline in sales to 8,953 units.
