By Beatriz Marie D. Cruz, Senior Reporter
PHILIPPINE CAR SALES declined by 19% in April as rising oil prices linked to the Middle East war proceed to dampen consumer demand for gas-powered vehicles, based on a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).
Electric vehicle (EV) sales emerged as a brilliant spot, nearly quadrupling in April amid growing demand for energy-efficient alternatives.
CAMPI-TMA data released on Sunday showed that vehicle sales fell by 18.9% to 27,225 units in April from the 33,580 units sold in the identical month a 12 months ago.
This was the steepest drop in total automobile sales for the reason that 11.5% decline recorded in August 2021.
On a monthly basis, total vehicle sales dropped by 24.6% from 36,104 units sold in March.
Including other industry data, CAMPI said total vehicle sales fell by an annual 8% to 32,400 units in April.
“While the market has not fully recovered from last 12 months’s second semester slowdown, this was further affected by the oil crisis with customers fastidiously considering their automobile purchase,” CAMPI President Jose Maria M. Atienza said in an announcement.
Passenger automobile sales, which made up 20.49% of total sales, fell by 14.2% to five,578 units in April from 6,498 units sold in the identical month last 12 months. It likewise dropped by 19.66% from 6,943 units sold in March.
Business vehicle sales, which accounted for 79.51% of industry sales, declined by 20.1% to 21,647 units in April from 27,082 units sold in the identical month last 12 months. Month on month, sales fell by 25.8% from the 29,161 units sold in March.
Sales of sunshine business vehicles slumped by 16.3% to 16,885 units in April from the 20,165 units sold last 12 months, while Asian utility vehicle sales dropped by 32% to 4,077 units from 5,992 units sold within the year-ago period.
Sales of light- and medium-duty trucks in April fell by 12.8% and 29.2% to 435 units and 206 units, respectively. Sales of professional quality trucks also slumped by 61.7% to 44 units in April.
In the primary 4 months of the 12 months, total auto sales declined by 11.8% to 132,867 units from 150,654 units sold in the identical period last 12 months.
As of end-April, passenger automobile sales decreased by 16.5% to 25,746 units, while business vehicle sales slid by 10.6% to 107,121 units.
Chinabank Capital Corp. Managing Director Juan Paolo E. Colet attributed the decline in automobile sales to soaring pump prices and other inflationary pressures.
“High prices for gas and other goods are impacting the budgets of potential buyers and thereby taking a toll on overall vehicle demand,” he said in a Viber message.
Headline inflation accelerated to a three-year high 7.2% in April as elevated oil prices drove up the price of basic necessities like food and transport.
Pump prices have soared for the reason that Iran war began on Feb. 28 amid disruptions in global oil supply.
Mr. Colet also noted that some businesses are scaling back on their vehicle purchases resulting from the weaker economic environment.
The outlook for gas-powered cars will “remain difficult” all year long, he said.
EV DEMAND
“EV demand is predicted to be resilient as preference shifts to cost-efficient cars that are usually not depending on fossil fuels,” Mr. Colet added.
In April, total EV (xEV) sales skyrocketed by 288% to five,855 units from 1,509 units sold in the identical month last 12 months.
Nonetheless, the segment, which incorporates battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV), saw a 4.8% monthly decline in sales from the 6,148 units sold in March.
In the primary 4 months of the 12 months, xEV sales surged by 158.9% to 17,655 units from 6,820 units sold in the identical period last 12 months.
HEVs accounted for 70.15% of EV sales in April, which greater than tripled by 242.3% to 4,107 units. This brought the end-April sales in HEVs by 115.3% higher at 12,368 units.
BEV sales in April jumped by 46.5% to 419 units in April, while PHEV sales skyrocketed by 5,678.3% to 1,329 units in April.
Within the January-to-April period, BEV and PHEV sales surged by 176.9% and a pair of,531% to 2,708 units and a pair of,579 units, respectively.
“The purchasers are very much aware of what’s practical during these times thus the increased demand for energy efficient vehicles like xEVs and lower displacement, fuel-efficient internal combustion engine (ICE) vehicles,” CAMPI’s Mr. Atienza said.
Toyota Motor Philippines Corp. remained a market leader as of end-April with a 49.83% market share, despite an 8% decline sales to 66,206 units throughout the period.
This was followed by Mitsubishi Motors Philippines Corp., despite an 18.1% slump in sales to 24,371 units within the four-month period. Suzuki Phils., Inc. ranked third in market share whilst sales fell by 10.2% to six,289 units as of end-April.
Completing the highest five are Nissan Philippines, Inc., despite a 34.9% drop in end-April sales to five,323 units and Ford Motor Company Phils., Inc., despite a 27.5% fall in sales to 4,877 units.