By Tessa R. Salazar
Philippine Daily Inquirer

POLITICIANS can make all the noise and mudsling they want. Car buyers are just going to roll up their windows, turn up the volume of their car stereos, and drive quietly away to the relative peace and quiet of their own home and workplace.

During this politically charged first quarter of 2008, at least, that’s what the auto industry observes as the general attitude of many of its customers. The appetite to buy hasn’t been spoiled the least by political volatility.

The recent vehicle sales report prepared by the Chamber of Automotive Manufacturers of the Philippines Inc. shows the Pinoy car buyer unmindful of the political noise with a continuous double-digit growth trend for the industry during the first two months of 2008.

Campi is composed of the majority of the big carmakers and assemblers in the Philippines.

“Continued growth is still expected in the coming months amid political noise tempered by relatively stable economic numbers coupled with the strength of the peso,” says Elizabeth Lee, Campi president.

Lee, Universal Motors Corp. executive vice president for marketing, said that in the Philippines, the majority of vehicles bought have been commercial vehicles, with popular choices AUVs (Asian utility vehicles), vans and pickups. She explained that such choice of vehicle type “satisfies a need rather than a want. These vehicles have become relatively more of a necessity.”

Still, prolonged political uncertainties could eventually take their toll on sales reports in the long run. Lee warned that prolonged political noise could adversely affect business sentiments as a whole. Economic growth (such as high GDPs) helps fuel automotive growth, as the two are directly correlated to each other.

The Campi report shows car sales performance as of February increased 14.3 percent compared to January and February performances in 2007. Last month, the industry sold 9,472 units.

Mel Dizon, Mitsubishi Philippines’ senior vice president for marketing and Campi vice President, surmised that the reasons for strong growth amid political noise are:

• The market believes the political crisis will be resolved peacefully and the end result will be for the good.

• The industry sales are fueled more by “economic needs” rather than for “fun” use.

• Sustained OFW purchases have been a big factor for growth.

Toyota Motors Philippines first vice president for Marketing and Sales Daniel Isla said, “the country has been governed by political circuses as far back as I can recall. We all have lived political ruckuses in varying degrees.”

Isla added that “there is now more concern for economic factors like continuing oil price hikes and eroding purchasing power of overseas Filipino workers.”

“Notwithstanding, we remain optimistic that the industry will grow, though modestly, at five percent,” he said.

“Politics do not kill dreams and aspirations,” Isla quipped.

February reports showed passenger car sales at 3,123 while 6,956 commercial vehicles were sold. CVs continue to corner the market with a 67 percent share, growing at 12 percent while the passenger car segment showed a strong growth of 19 percent.

Lee said the growth for the passenger car market is seen to continue in the coming months.

Campi also credits such market growth to promotional activities of the dealers and the sales of new models introduced last year.