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The country’s car sales posted a 1.4 percent increase in July, the slowest growth rate for the year, as the industry reels from the impact of severe weather disturbances.
Based on a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA), car sales in the first seven months of the year reached 269,207 units.
In comparison, the same period in 2024 saw 265,210 vehicles sold.
At a growth rate of 1.4 percent, this is now the slowest increase in sales for the year, edging out the 1.6 percent growth in May.
Taking into account July alone, car sales stood at 38,295 units, a 5.4 percent contraction from 40,483 units in July of last year.
CAMPI President Rommel Gutierrez attributed the sluggish uptick last month to the impact of the three successive storms and the southwest monsoon.
These weather disruptions, which lasted up to two weeks, affected retail operations, with customers more inclined to postpone their purchases.
With vehicle sales still growing despite the bad weather, Gutierrez is confident that the industry will remain on a positive trajectory, especially after seeing signs of recovery in the passenger car segment.
Sales of passenger cars in July reached 8,120 units, a 17.31 percent improvement from last year’s 6,922. This marks a strong turnaround from the 12-percent drop in the prior month.
Based on the seven-month data, the passenger segment has recorded sales of 53,767 units, a 24.1-percent reduction from last year’s 70,798.
Commercial vehicles, which have seen consistent month-on-month growth, fell by 10 percent in July to 30,175 units from last year’s 33,561 units.
Year-to-date growth of the segment stood at 10.6 percent, selling 215,440 units in end-July, compared to 194,812 units.
Based on joint CAMPI-TMA data, commercial vehicles, which are primarily used by businesses to transport goods, account for 80 percent of the industry’s total sales.
“The industry’s continued growth, particularly in commercial segments, reflects strong market fundamentals and the agility of our members in navigating short-term challenges,” said Gutierrez.
“We are optimistic that the momentum will carry forward into the second half of the year,” he added.
Before the year ends, Gutierrez said the industry will launch new vehicle models and promotional campaigns to attract consumer interest.
This year, CAMPI is targeting to reach 500,000 units, up from 467,252 units in 2024.
Sought for comment, Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said he is expecting that commercial vehicles will still be the most pivotal segment in the latter part of the year.
Ricafort told Manila Bulletin that there will be a rise in preference for sport utility vehicles (SUVs) and vehicles with higher elevation in view of the rainy season.
He said another source of growth would be electric vehicles (EVs), especially if brands offer low down payments and more affordable vehicle purchase schemes.
CAMPI-TMA data showed that the EV segment saw a drop in demand in July, recording 2,707 units versus June’s 3,057 units.
During the first seven months of the year, 16,195 EVs have been sold in the country.
As of end-July, Toyota Motor Philippines Corp. remains the industry’s top player with a 48.04 percent market share, selling a total of 129,334 units.
Mitsubishi Motors Philippines Corp. followed this with a 19-percent market share, Nissan Philippines Inc. with 5.06 percent, Ford Group Philippines with 4.95 percent, and Suzuki Philippines Inc. with 4.69 percent.
