ALL ACCOUNTED FOR
- Heads of 17 brands under the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) show up in full force for the launch of the 9th Philippine International Motor Show (PIMS)
A precedent of sorts was established in the automotive industry last Monday.
For the first time in Philippine automotive history, the presidents, CEOs, and managing directors of the 17 brands participating in the 9th Philippine International Motor Show (PIMS) as members of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) attended the press conference in anticipation of the motor show.
The 17 CAMPI members that will display their brands’ latest offerings, trends and innovations are (alphabetically listed) BMW, Changan, Chery, Daewoo, Foton, Ford, Honda, Hyundai, Isuzu, Jetour, Kia, Mazda, MG, Mitsubishi, Nissan, Suzuki, and Toyota.
The auto industry leaders were present not only for photo ops and for the sumptuous lunch in the ballroom of the Grand Hyatt in BGC, but more importantly, as panelists who went on stage to answer questions from the press. The theme of the 9th PIMS, to be held at the World Trade Center on October 24 – 27, is “Dare. Drive. The Future Redefined.”
CAMPI president Rommel Gutierrez, who is concurrently 1st vice president of Toyota Motor PH Corp., welcomed those present with the good news that the industry is well on its way of surpassing its target sales total of 468,300 units for 2024. In 2023, a grand total of 429,807 vehicles were sold.
Half a million target
Gutierrez added that if vehicle sales surge in this second half of the year, as usually happens, and if the 9th PIMS generates the expected excited interest among consumers, the industry just might hit its dream target of 500,000 vehicles sold by year-end.
If the industry does not achieve the half-a-million mark this year, then next year, Gutierrez said. “The market is evolving in the next five – ten years. . . .We are redefining the future. We have never been so confident in the industry. CAMPI has new applicants. Local manufacturing has increased,” he said.
During the open forum, the press found out that the ratio of car ownership per 1,000 people in this country is 35 – 40 percent. Sixty percent of sales are transacted in the provinces, as the car market in the National Capital Region (NCR) is saturated. Opening and operating dealerships in more provinces encourages people to buy cars and accelerates motorization nationwide.
Driving sales
The factors driving sales are the industry’s partnership with banks for financial solutions, the introduction of new car models, and expanded tariff exemptions for electric vehicles (EVs). BPI has been the exclusive bank partner of PIMS for years.
But above all, buying a car is now a necessity, given the inadequate public transportation system, and cars have become more affordable.
Regarding the electrification trend, it was noted that aside from Toyota’s 14 hybrid electric vehicle (HEV) models and two battery electric vehicles (BEVs), all the Chinese brands, even those that are not CAMPI members, offer hybrids and EVs. China is the world’s biggest EV manufacturer and exporter. The young market is ready to accept the new energy technology, and the industry in the Philippines must prepare for this. It was also pointed out that aside from tax exemptions for EVs, developing the supporting infrastructure and ecosystem is needed.
But despite the bullish outlook, challenges remain, such as the inconsistent, uncertain government policies that dampen investor confidence and stall new ventures, supply chain disruptions, and the volatile foreign exchange rate.CAMPI and PIMS
CAMPI started staging the PIMS, a biennial event, in 2006 to bring together the top manufacturers with key government and private sector stakeholders to promote economic growth through the development of a viable and self-sustaining automotive industry in the Philippines.
At present, CAMPI has 24 members, eight of which are regular members and 16 are associate members. To be a regular member, a car company must operate manufacturing facilities in the country. Since the dissolution of the Association of Vehicle Importers and Distributors, Inc. (AVID), a smaller auto industry group, some of its members have joined CAMPI.
Notably, among the 17 CAMPI members participating in the 9th PIMS, five are made-in-China brands (Changan, Chery, Foton, Jetour, MG) while Daewoo is a South Korean brand. Ten of the 17 are listed as the Top 10 Sales Performers as of YTD 1st semester 2024 (Toyota, Mitsubishi, Ford, Nissan, Suzuki, Isuzu, Honda, Hyundai, MG, and Kia.) BMW and Mazda are in neither list.
