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Wednesday, April 24, 2024

Tougher Covid curbs to cut car sales in August­–Campi

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After posting a 4.7-percent sales growth last July, the automobile industry expects sales to decline this month due to the implementation of the enhanced community quarantine (ECQ) in Metro Manila.

Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) President Rommel Gutierrez said in a statement on Wednesday that the “the industry welcomed the year-on-year growth of 4.7 percent but anticipates a decline in sales this month with the reimposition of ECQ in NCR [National Capital Region], among other high-risk areas.”

NCR is under ECQ from August 6 to 20 amid the Covid-19 Delta variant threat.

ING Bank Manila said the ECQ will dent car sales, forecasting a 2.5-percent year-on-year contraction in the third quarter. This is a significant reversal from the 205-percent uptick in the second quarter.

“ECQ season 3 running through August will likely force vehicle sales to retreat once more on the back of heightened restrictions as well as the likely deterioration in incomes as sentiment sours further,” it said in a commentary.

“The absence of car sales from the country GDP accounting will translate to a softer GDP print emanating from the capital formation account which will likely accompany fading government spending and lackluster consumption.”

In July, car sales grew by 4.7 percent to 21,498 units from 20,542 units in the same month last year, according to a joint report by Campi and Truck Manufacturers Association.

The commercial vehicle (CV) segment accounted for the bulk of the sales during the period with 14,396 units, which is nearly flat from last year’s 14,385 units.

Passenger car (PC) sales, meanwhile, rose by 15.3 percent to 7,102 units in July from last year’s 6,157 units.

In January to July, industry sales were up 46.1 percent to 154,265 units from 105,583 units a year ago.

CV sales rose by 38.7 percent to 104,757 units from last year’s 75,514 units.

Sales for the PC segment jumped 64.6 percent to 49,508 units in the January-to-July period from last year’s 30,069 units.

In the seven-month period, Japanese brand Toyota Motor Philippines Corp. continued to dominate the market with 48.31-percent share. It sold 74,521 units, or 67.5 percent more than the 44,481 units recorded in the same period last year.

Other top sellers were Mitsubishi Motors Philippines Corp. and Suzuki Phils. Inc. with 22,504 units and 11,635 units, respectively.

Read full article on BusinessMirror

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