THE Philippines’ automotive industry remains bullish during the three quarters of 2012 as the Association of Vehicle Importers and Distributors, Inc. (AVID) last week reported that vehicle sales went up by almost a fifth during the first 10 months of the year.

Based on records released by the group, AVID members from January to October posted an 18-percent growth, or from 20,340 units sold in the same period in 2011 to 24,004 vehicles delivered this year.

AVID President Fe Perez-Agudo attributed the growth to “strong” sales in the industry’s passenger car (PC) and light commercial vehicle (LCV) segments.

PC sales increased 29 percent while those of LCV grew by 5 percent.

The AVID official—who is also president and chief executive of Hyundai Asia Resources Inc.—added that the launch of new models provided the extra boost in sales, especially in the LCV category.

The top three brands in the AVID group that posted the best growth results were British United Automobiles Inc. (Mini) with 41 percent, The Covenant Car Co. Inc. (Chevrolet) with 23 percent and HARI with 13 percent.

HARI reported it sold 18,818 vehicles from January to October, compared to the 16,705 units it moved during the same period last year.

“Sustained positive economic outlook continues to bolster consumer spending as 2012 draws to a close,” Agudo said. “Moreover, with the positive sales performance and recent honors reaped by AVID members from the country’s respected car awards bodies, we expect a steady, if not brisker, pace for our sales at yearend,” she added.

The group also expressed optimism for the Philippine economy “despite lurking global economic threats.”

“The Philippines has recently been promoted to Ba1 by Moody’s, which is a score below the investment grade. The upgrade was based on the local economy’s overall progress, medium-term growth prospects and an overall stable financial sector,” Agudo noted. “With this new credit status, the country will appear to be more inviting for more job-generating Foreign Direct Investments, which grew in the first seven months of the year to $1.025 billion. In addition, the 5.6-percent growth in remittances, increasing government spending on infrastructure, and the Filipinos’ improved consumer confidence should be favorable for the country’s economy towards the end of the year.”

Manufacturers’ results
Earlier, the Chamber of Automotive Manufacturers of the Philippines (CAMPI) reported that it posted its highest sales registered for 2012 in October. CAMPI said its sales during the first 10 months of the year increased 7 percent with 126,663 units moved compared to the 118,762 vehicles delivered over the same period in 2011.

The group registered sales of 15,081 units in October, a 17-percent growth from its September total of 12,857 units—the strongest for the year yet. Year-on-year, CAMPI posted a 12-percent hike.

The sales performance of the group was attributed to the “normalization of supply and aggressive promotions being launched by most of the automotive brands,” according to its president, lawyer Rommel Gutierrez, who is also a top executive at Toyota Motor Phils. (TMP).

“Likewise, the industry was able to take advantage of the country’s strong economy and the increased purchasing power of the Filipino,” Gutierrez said, adding that the increased performance is a “very clear sign that the industry continues to be strong and is on track.”

“I am confident that we will exceed its last year’s performance despite the slow start at the beginning of the year due to supply shortages,” Gutierrez said.

CAMPI’s top three sellers are TMP with a 42-percent share of the market, Mitsubishi Motors Phils. Corp. (22 percent) and Honda Cars Phils. Inc. (8 percent).