Global Sales for Cars Slow Down While PH Market Expected to Grow

Global sales of cars are expected to decrease this year but the opposite is projected for the Philippine automotive industry. With the reopening of the economy, more cars are being sold in the Philippines.

ING changed its projected global car market outlook for 2022 from a 0.5% dip to a 4 – 6% growth. The initial forecasted dip was due to the global supply chains being affected by the Ukraine – Russia war. Demand for new vehicles is also recorded as decreasing due to the high inflation.

Nicholas Mapa, ING Bank Manila Senior Economist, says that there is a predicted growth of 11% in Philippine car sales for the rest of the year as long as the economy remains open.

According to Mapa, “Onshore, road vehicle sales have been able to move away from these global trends due in large part to the reopening of the economy and policy support over the past few years,”

In ING’s report, it says that it “had hoped that the current year would deliver a continued recovery in global car sales beginning to bridge the gap with the prepandemic sales levels.”

The report also noted a global chip shortage, citing the Russia – Ukraine war as these are the two largest exporters of krypton, a needed component in the manufacturing of chips needed in vehicles.

Mapa mentions that another driver was the low-interest rates which drew in more buyers with cheaper loans.

The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association. released a joint report showing that in the first half of the year, sales increased by 16.7% this 2022 compared to the same period of 2021.

Source: Inquirer