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Auto industry seen to grow despite rising oil prices, supply woes

The country’s automotive industry is expected to continue its growth this year despite the rising oil prices and supply constraints in the global value chain being experienced across the world.

AC Motors president Antonio Zara said in an interview on the sidelines of the launching of AC Motors Centrale Tuesday night that total industry sales will grow between 11 and 15 percent in 2022.

“The growth rate relative to last year, I think, will continue because we haven’t seen the real demand… I’m confident we will grow 11 to 15 percent in 2022,” Zara said.

The Chamber of Automotive Manufacturers of the Philippines (CAMPI) said last March that the industry targets to end 2022 with 336,000 unit sales, 17 increase higher than 2021’s volume.

“The car industry is a good barometer of the economy and it is good that despite supply constraints, we are growing by 11 percent,” he added. “Very bullish about continued economic recovery, continued growth in the industry, and of course continued sustainable growth of AC Motors brands.”

Vehicle brands under AC Motors include Honda, Isuzu, KIA, Volkswagen, Maxus, KTM, and Husqvarna.

The Ayala-led firm has opened AC Motors Centrale in Bonifacio Global City, a consolidated showroom for all AC Motors brands.

Zara said AC Motors is projected to outpace the industry sales this year.

Aside from the continued rise in oil prices, he added delays in delivery of cars and auto parts challenge both local and global auto industry, and these could affect the demand for vehicles.

He said because of the constraints in the supply chain, it takes around three months for a car company to deliver the order to the customer.

But Zara is expecting that the global supply chain will improve towards the latter part of 2022.

“Will we normalize by the end of the year? Hopefully but that’s not a certainty. But what we are bullish about would be continued improvement in supply in the second half of the year relative to the first half,” he added.

Zara said some banks have decided not to reflect yet on the hike in interest rates announced by the Monetary Board “to stimulate the economy and continue approving bank loans”.*PNA

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