The Market Monitor Minding the Nation's Business
Vehicle sales are growing in pace with the strong economic growth as the combined sales figures of Chamber of Automotoive Manufacturers of the Philippines Inc. (CAMPI), Truck Manufacturers Association (TMA), and Association of Vehicle Importers and Distributors (AVID) last year reached 404,710 units to exceed the sales target of 370,000 for last year.
The government reported a 6.6 percent economic expansion in the fourth quarter to bring full-year growth to 6.8 percent which is among the strongest growth figure in the region.
The vehicle sales target for this year was placed at between 430,000 and 450,000 units.
Mitsubishi Motors Philippine Corp. (MMPC), a member of Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), in a statement Thursday said the confidence of the auto industry was pushed by the country’s economic condition and strong local demand.
“Given the aggressiveness of the players, a healthy economic condition, and the increasing demand for brand new vehicles, there is no doubt this target will be met by the end of 2017,” MMPC said.
The industry’s target for this year is six to 11 percent higher than its sales for the full year of 2016.
MMPC also recorded its highest annual unit sales in 2016 at 61,400 units, the Japanese automotive vehicle manufacturer said.
Total sales last year was 13.5 percent higher from 2015’s sales of 54,087 units.
Last year’s sales expansion also marked MMPC’s 10th consecutive year for annual sales growth.
“The steady growth and notable success of MMPC was reflected from the equally remarkable increase in sales of the passenger car, light commercial vehicle (LCV), and truck and bus segments,” MMPC noted.
MMPC’s passenger cars reached total sales of 20,564 units in 2016, up by 14.4 percent from 17,982 unit sales in its previous year.
“The sales of the passenger car was further boosted with the introduction of the upgraded 2016 Mirage hatchback,” the automaker said.
LCV sales likewise increased by 12.1 percent to 38,916 units in 2016, driven by the strong demand for Montero Sport as well as steadfast growth of L300 and Adventure models.
MMPC’s truck and bus segment sales also jumped by 36.8 percent to 1,920 units in 2016, as there are increasing demands for brand new trucks and buses than the second-hand units.
Moreover, the car manufacturer targets to increase its sales this 2017 by 22 percent to 75,000 units from the total sales last year.
“In order to attain the 75,000 unit target, MMPC will maximize the production of its Mirage models under the government’s CARS (Comprehensive Automotive Resurgence Strategy) Program,” MMPC said.
MMPC is one of the participating car makers of CARS Program which provide fiscal and non-fiscal incentives to car companies that can produce 200,000 units in the six-year period of the policy.
“With the start of local production on February 2017, the company has high hopes of reaching its full potential in sales this year given the increasing demand for entry level passenger cars,” MMPC added.