Inspite of the global economic slowdown, the local auto industry's total sales posted a six percent growth in 2008.
 
Data released by the local industry association, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), showed that a total of 124,449 vehicles were sold last year. Sales peaked in December when buyers wheeled out about 10,000 vehicles from car showrooms.

Sales volume would have been higher, experts said, if not for the unusually long holiday break. Selling opportunities were cut short by almost two weeks.
 
Sales of commercial vehicles accounted for 64.3 % of total industry sales.
 
"Elsewhere in and around the world, the auto markets of developed countries experienced steep declines due to the credit crunch coupled by deteriorating consumer confidence in those respective markets. Thankfully, there is enough liquidity in the local financing environment with consumers able to take out loans for their personal and business needs," said CAMPI president Elizabeth Lee.
 
Slow growth in 2009

The industry will not be as resilient in 2009, however. While sales are expected to be stable, Campi has projected a conservative growth of 2 to 4 percent.

The government's projection is even dimmer. Board of Investors managing head Elmer Hernandez projected a flat growth at the minimum or a four percent growth at the maximum.
 
"It will be a challenging year for most, but nevertheless we are still looking forward to growth year for 2009," said Lee.

Job losses
 
Hernandez said the government is already preparing a number of measures to cushion the impact of the global financial crisis on the business sector, including the auto industry, in order to prevent job losses and further downsizing.
 
"We are aware that local companies have already restructured (their) business plans, and probably even (their) labor agreements to ensure the long-term viability of their operations. The BOI is currently studying measures that may be adopted by the government to forestall severe economic repercussions not only on the automotive industry but on the entire business sector as well," Hernandez said.
 
Without providing specifics, Hernandez said fiscal and non-fiscal incentives will be provided. He said the management committee of the BOI tackled the matter on Thursday. These will supposedly support the industry's sales outlook for 2009. 

•  Campi earlier called on the BOI to help the industry survive the financial crisis. Campi is asking for the following measures:
• assistance in easing doing business in the country
• assistance in ensuring the growth of the local industry through market expansion through the implementation of the ban on importation of used vehicles under Executive Order 156
• stricter implementation of Republic Act 8506 which bans the importation of right-hand drive vehicles
• a commitment from government to purchase locally assemble vehicles for its fleet
• lowering of the general 20 percent down payment
• upgrading of public utility vehicles with  newer vehicles
• streamlining of registration requirements