CAMPI to raise car sales projection

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said vehicle sales could increase by the double digits this year as demand continues to be strong, but the group prefers to wait after the elections before making any revision to its forecast. At the sidelines of a BPI Family Savings Bank event on Friday, CAMPI President Elizabeth H. Lee told reporters that her group plans to revise its growth forecasts for vehicle sales given the sustained demand, but said that a higher projection will depend on the conduct of elections. "If the May 10 election will turn out relatively tame, then we can see a stronger growth than the original forecast... probably double digit growth, but it really depends on the May elections," she said. "We were looking at 137,000 [units] that time, but now we would have to do a reforecast. It, however, also has to be tempered because of the May elections so we are looking at higher than [the original estimate of] 4% [growth]." Ms. Lee said CAMPI’s new estimate will also factor in the first quarter performance, when vehicle sales by 20 automotive firm surged by 35.5% to 38,709 units, and will continue to be driven by commercial vehicles "About 64% of total sales are commercial vehicles composed of AUVs (Asian utility vehicles), pick-up trucks, vans and compact SUVs (sports utility vehicles). That trend has been going on for a number of years already and we see that continuing given the entrepreneurial streak of Filipinos given these vehicles’ dual purposes," she added. The CAMPI official said vehicle sales will continue to be helped by the introduction of new models and financing programs offered by lenders, which make it easier for buyers acquire automobiles. Ms. Lee added that the continued growth of remittances will help firm up the demand for cars, noting that two out of three Filipino households are supported by money sent home by family members working abroad. Meanwhile, the BPI Family Savings Bank launched its third Nationwide Auto Madness promo on Friday, wherein people who borrow money from the bank in order to buy a car get free comprehensive motor insurance coverage for one year that also includes "acts of God." The bank said in press release that the promo, which will run until May 2, includes 16 car brands and offer borrowers rates lower than what it normally offers. -- Don Gil K. Carreon, BusinessWorld