MANILA - The drop in vehicle sales eased slightly for the 8 months ending August, according to the Chamber of Automotive Manufacturers of the Philippines (CAMPI).

Auto sales for the 8-month period fell 1.3%, an improvement from the 2.4% drop recorded from January to July. CAMPI President Elizabeth Lee attributed this to stronger remittance inflows, a main driver of consumption in the Philippines.

Money sent home by overseas Filipino workers reached a record $1.498 billion in June, amid fears that remittances would contract as rich countries would slash jobs and prioritize their own citizens in employment generation efforts. Remittance data for July are set to be released next week.

"We are thankful that sales improved though slightly in terms of year to date figures. The industry remains positive and is banking on continued and stronger OFW remittances which will spur consumption coupled with auto loans seen to grow as well in the coming months. So far, lower rates have helped auto sales," Lee said in a statement released Wednesday.

Sales of commercial vehicles (CV) dropped 11.8% month-on-month in August, with CAMPI expecting a better performance by September. On a year-to-date basis, CAMPI said CV sales were down 1.6%.

On the other hand, passenger car (PC) sales were down 3% and 0.9% in August and in the first 8 months of 2009, respectively. According to CAMPI, the limited availability of PC units and colors contributed to the slight decline during both periods.

Sales of Asian utility vehicles (AUV) also declined on a year-to-date basis by 14%, driven mainly by the absence of fleet sales and low supply of high-volume models.

Only trucks, buses, and light commercial vehicles (LCV) posted sales growth on a year-to-date basis. Sales of trucks and buses were up 0.8% due to fleet sales deliveries, while LCV sales were up 7.4% thanks to strong sales of pick-up trucks, vans, and compact wagons.

"Recently-launched models also helped boost overall year-to-date sales," CAMPI said.