Auto industry sees 10% growth in 2019

November 01, 2018
Car - Assembly

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) expects the local motor vehicle industry to recover in 2019 after the implementation of tax reforms at the start of this year, which reportedly caused a slump in vehicle sales.

In an interview, CAMPI president Rommel Gutierrez said that a 10-percent growth in volume of sales is possible for the entire automotive vehicle industry in 2019.

“We are positive about next year. Whatever is the figure for this year, we would project better figure next year,” he said.

From January to September this year, sales of both auto manufacturers and car importers posted double-digit decrements.

Industry sales in the first nine months of 2018 only reached more than 320,000 units from more than 375,000 units in the same period last year.

The optimism for the industry was also echoed by CAMPI Vice President Dante Santos, saying that the declines in vehicle sales “won’t be forever”.

Santos said the industry is expecting better market conditions next year after adjusting to some challenges this year, such as the excise tax on automobiles, higher inflation rate, increasing interest rates, and rising oil prices, among others.