In case you’ve been living under a rock, the prospects of the Philippine automotive industry are looking dim this 2020. With the Taal Volcano ash fall and the Enhanced Community Quarantine (ECQ) knocking the wind out of car sales, Fitch Solutions is saying that new car sales will remain flat this year.
The global market insights company says that they’re projecting a mere 0.4 percent growth in the Philippine automotive market, or a total of 371,456 units this year. The passenger car (PC) segment will take the brunt, with an expected one percent drop.
The revised figure is a significant drop from Fitch’s earlier projection of a 7.4 percent growth.
Fitch Solutions says that the first half of 2020 in particular will be a trying time for the auto industry as consumers hold off spending on non-essential goods such as cars because of how the ECQ may impact their future employment. Even the government’s own PUV Modernization Program may be in jeopardy as transport operators will hold off any planned fleet renewals due to significant losses during the ECQ.
It is for this reason that dealers are urging the DTI to allow them to re-open at least for vehicle servicing and parts sales.
Despite the challenging year ahead, Fitch sees that the Philippine auto industry will rebound in 2021 to 2029 to the tune of around 7 percent growth annually.
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