First, the good news. On July 22, the Philippine Tariff Commission concluded, after a lengthy investigation, that there is no basis for the safeguard tax that had been provisionally imposed on imported motor vehicles. This means that vehicle prices will revert to the original, and thus stimulate sales.
Now, the not-so-bad news. Compared to July last year, sales in July this year as reported by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) grew by a modest 4.7% from 20,542 units sold in July 2020 to 21,498 in July 2021. Month-on-month (July 2021 vs June 2021) growth was negative among the Top 10, except for Isuzu.
Isuzu PH Corp. sold 1,215 vehicles in July 2021 versus 1,103 in June 2021 (see chart.)
Meanwhile, the Association of Vehicle Importers and Distributors, Inc. (AVID) reported that sales dipped by 5% from 5,101 units sold in July 2020 to 4,862 units in July 2021. Month-on-month sales among AVID members posted a 2% decline from 4,961 in June 2021 to 4,862 units in July 2021.
The view from a year-to-date (YTD) perspective covering the first seven months is more encouraging. CAMPI and TMA reported that YTD, the industry has sold 154,256 units, reflecting a 46.1% increase compared with the same period last year.
AVID sales saw a 43% increase YTD from 24,610 units sold in January-July 2020 to 35,092 units sold in the same period this year.
Notwithstanding the modest 4.7% year-on-year growth recorded this July, CAMPI president Rommel Gutierrez said the industry welcomed it, but cautioned that a decline in sales this month looms ahead due to the reimposition of Enhanced Community Quarantine (ECQ), the hardest of lockdowns, in the National Capital Region and other high-risk areas from August 6 to 20.
AVID president Ma. Fe Perez-Agudo sounded optimistic when she said in a press release, “The gradual adaptation of the automotive industry to ‘now normal’ operations is mainly driven by the valuable lessons gathered and learned over the course of the period. These lessons fuel our passion for developing new and innovative ways to addressing the needs of the market.”
Race to No. 3
A glance at the sales chart for July 2021 shows that the top 10 brands retained their rankings same as of June 2021, or at the end of the first semester.
However, the race to win the coveted No. 3 perch continues to heat up. The three brands competing are still Suzuki, which overtook Ford this June to occupy 3rd place, followed by Ford at No. 4 and Nissan at No. 5.
Suzuki has increased its lead over Ford from 132 more units sold last June to 194 this July, while Ford has upped its margin over Nissan from 808 in June to 1,033 more units sold in July (see chart).
A major contributor to Ford’s strong sales performance this July is the Territory, a made-in-China, high tech-packed 5-seat subcompact crossover that was launched digitally on August 14, 2020 during the “Ghost Month” of the first pandemic year and in the midst of the August 04-18 snap lockdown in Metro Manila.
Despite the unfavorable timing of the Territory’s intro, in less than a year Ford sold 5,448 units of the Territory and gained 56% market share of the segment. At the close of the first semester this year, Ford listed the Territory as the brand’s second best-seller after the Ranger pickup, with 3,323 units of the Territory sold by YTD June 2021. The Territory’s SRP starts at P1.27 million.
Perhaps to challenge Ford, Suzuki recently launched the Vitara AllGrip subcompact SUV. The Vitara AllGrip costs more than the Territory with a starting SRP of P1.458 million but has the advantage of all-wheel-drive. In fact, the Vitara AllGrip is the only AWD subcompact SUV sold locally and incidentally, the only one imported from Europe (specifically from Hungary).
Meanwhile, Suzuki hangs on to the No. 3 spot with continuing strong sales of the Ertiga 7-seater compact MPV, the Carry utility minivan, and the Dzire subcompact sedan.
Nissan, No. 5 in the Top 10, continues its quest to regain the No. 3 position. In the lucrative compact crossover segment, Nissan has been offering the X-Trail for many years now, but somehow the X-Trail, which retails at P1.534 million upwards, has not been selling as expected. In fact, Nissan’s Juke subcompact crossover outsold the X-Trail despite its funky, polarizing design.
Nissan PH, Inc. has stopped selling the Juke, which is no longer produced in Japan, generating speculation that it will introduce the all-new Nissan Kicks next. Will the Kicks join the Terra midsized SUV and the Navara pickup as one of Nissan’s best-sellers, in order to boost sales and overtake rivals for the desired No. 3 spot?
If only to find out, monitoring the rankings of the Top 10 Sales Performers month-to-month is worthwhile.
