AUTOMAKERS are less pessimistic about vehicle sales this year given continued demand for electric cars, the resolution of supply issues and possibly lower fuel prices.
The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), which last month dropped its goal of selling 500,000 units after sales had fallen by eight to 10 percent, on Thursday said the decline was likely to slow to five to eight percent.
“[W]e’ve recalibrated and we’ll be around five to eight percent,” Campi President Jose Maria Atienza told reporters at the sidelines of the 10th Philippine International Motor Show.
“It’s an improvement from our previous projection ... it all depends on fuel prices, and what will happen to the [sales] mix and supply and demand,” he added.
May sales have improved from April but remain down compared to last year, Atienza said.
“May estimates are around 33,600, slightly higher than April but lower than last year,” he said.
Overall industry sales were “around 32,400” in April, Campi said last month, down from over 39,000 in March. Of this, Campi and the Truck Manufacturers Association (TMA) accounted for 27,225 units, down 24.6 percent from March and also 18.9 percent lower year on year.
Year to date, Campi and TMA sales were 11.8-percent lower at 132,867 units.
Electric vehicles accounted for 22 percent of April sales, up 288.0 percent year on year and 158.9-percent higher year to date. Sales fell by 4.8 percent from March, however, as automakers failed to keep up with surging demand.
Atienza said the EV share of total sales had fallen to 20 percent as supply issues persisted.
“We hope most of the brands are able to catch up to June, July, and August,” he said.
Campi remains upbeat about electric vehicles, Atienza continued, citing demand for fuel-efficient models and a growing range of available products.
“It’s a good time for electrified vehicles. The trend is clearly upward,” Atienza said.
Still, he said that the industry was hoping for government support with regard to the manufacture of commercial vehicles, which account for the bulk of automotive sales.
“[T]here’s demand for ICEs (internal combustion engines), especially for MSMEs looking for their pickup trucks or low displacement vehicles. We need the support of the government,” Atienza said.
A new framework should support commercial cars like Toyota’s Tamaraw model.
Atienza, who is executive vice president at Toyota Motor Philippines, said both EVs and ICE vehicles were important to sustain productivity and economic growth
“In a growing economy, we need such vehicles (ICE-powered ones) also but we need electrified vehicles as well, so we need both. We really appreciate the support of the government and we hope that we can expand this to a broader mix of models,” he said.
In a related development, an energy official said the government was working to facilitate the issuance of permits for the establishment of EV charging stations.
“What we’re working on is a joint memorandum issuance covering the DOE (Department of Energy) DILG (Department of the Interior and Local Government), DPWH (Department of Public Works and Highways) and ARTA (Anti-Red Tape Authority), to streamline the process so that it becomes faster for anyone who wants to put up the charging infrastructure,” Energy Utilization and Management Bureau director Patrick Aquino said at the sidelines of the PIMs.
“Right now, on the average, what we’re seeing is it’s at least six months ... the goal is to cut down the time from the existing six months to closer.”
DOE data show that the country currently has 1,600 charging stations as of end-April. The department is targeting 7,000 by 2028. CHYNNA GRACE ONG
