The domestic motor vehicle industry expects 2.3 percent growth this year over last year bucking global auto trends and a 4 percent growth for next year, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said.

CAMPI president Elizabeth H. Lee said the numbers are still tentative since the year is not yet over but the figures would show that they are going to exceed its target this year of a flat growth.

“We are exceeding our year-end target and we have proven our resiliency during this crisis period. We bucked down regional trends of declining sales,” Lee said.

Based on the tentative figure of 2.3 percent growth this year, total auto sales is expected to reach 127,000 units this year while the 4 percent projected growth next year would translate to 132,000 units next year.

She said the auto industry is a beneficiary of the strong remittances from the overseas Filipino workers, the stable auto financing and the replacements of flood-damaged vehicles following the typhoon Ondoy.

Monthly sales have started improving in September with 6.9 percent to 12.9 percent in October.

Comparatively sales in other countries have decreased double digit.
Indonesia dropped by 28 percent, Singapore by 26 percent, Thailand by 21 percent and Malaysia 8 percent.

“We are faring better in terms of growth,” Lee said but added that in terms of volume, the Philippines is dwarfed by the sales figure of other ASEAN countries. Indonesia sells three times higher than the Philippines while Malaysia and Thailand sell half a million unit each annually and Vietnam is already at the level of the Philippines.

“We are thankful the local industry was spared and able to buck the trend among developing countries but we need to grow faster,” she added.

Lee noted that even with the industry’s growth, it has not yet recovered back to the 1997 level of 162,000 unit sales.