Motor vehicle sales in the first half of the year contracted, but the local auto industry still expects at least flat growth this year. According to the latest joint report of the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association, total sales in the first six months reached 59,910 units, down 2.8 per cent from last year's sales of 61,632 units.

In June alone, sales reached 10,909 units, up 4.4 per cent compared with May's 10,450 units. In a statement, Elizabeth Lee, Campi president said that with the stable car financing environment and the projected continuous influx of remittances from overseas Filipino workers, "car sales should remain fairly stable with continued month-on-month growth to be seen in the next half of the year. The forecast for this year remains tempered toward at least a flat growth."

In a text message, she said, "[The year-end industry sales target is] tempered to flat growth only, which is the worst-case scenario. [There is] no negative forecast at this time." "Auto players remain optimistic with better performance in the next half of the year," she said.

"We are thankful that the local auto sales is holding up and continues to register some growth month-on-month, even amid the global crisis and considering the negative performance of auto sales in the West and even in Asean," she added.

Earlier, the domestic automotive sector projected between 2 per cent and 4 per cent growth this year. But an official of top-selling Toyota Motor Philippines Corp. said industry sales might contract by between 2 per cent and 5 per cent year-on-year.

Sales of commercial vehicles, which accounted for about two-thirds of the total, fell 5.2 per cent year-on-year even as month-on-month sales increased 6.2 per cent. "Growth in [sales of commercial vehicles] is expected in the next half with expected fleet sales to materialize as well," Campi said.

Sales of passenger cars inched up 1.8 per cent year-on-year and 1.2 per cent month-on-month, which Campi attributed to "new model launches and continued aggressive promotions" by car companies.

Toyota still leads the pack with sales of 20,768 units in the first six months of the year, even as year-to-date sales were down 6.5 per cent from last year. Its market share in the six-month period declined to 34.7 per cent from 36 per cent last year.

Mitsubishi Motors Philippines Corp. posted the second-largest sales in the first half with 10,654 units, up 27.4 per cent year-on-year. Mitsubishi's six-month market share of 17.8 per cent is also up 4.2 per cent year-on-year.

Honda Cars Philippines Inc. sold the third most number of vehicles with 8,683 units, up 13.1 per cent year-on-year. Its six-month market share of 14.5 per cent is up 2 per cent year-on-year.