MANILA, Philippines — Following a pause of 11 weeks of price hikes last week, oil…
Despite rising energy prices and supply issues, the auto industry is expected to expand.
Despite rising oil costs and supply shortages faced globally in the global value chain, the automobile industry in the country is anticipated to keep expanding this year.
In an interview conducted on the eve of the opening of AC Motors Centrale on Tuesday night, AC Motors President Antonio Zara predicted that the industry’s overall sales will increase by between 11 and 15 percent in 2022.
“We haven’t seen the genuine demand, so I expect the increase rate relative to last year will continue… We will expand by 11 to 15 percent in 2022, I’m convinced,” Zara remarked.
According to the Chamber of Automotive Manufacturers of the Philippines (CAMPI), the sector hopes to sell 336,000 units by the end of 2022, a 17 percent increase over 2021’s total.
The auto industry is a reliable indicator of the health of the economy, and it is encouraging that we are still expanding by 11% in spite of supply constraints. I am really optimistic about the future of the economy, the industry, and, of course, the brands owned by AC Motors.
Under the umbrella of AC Motors are the automobile brands Honda, Isuzu, KIA, Volkswagen, Maxus, KTM, and Husqvarna.
In Bonifacio Global City, the Ayala-led company has established AC Motors Centrale, a centralized showroom for all AC Motors brands.
According to Zara, AC Motors’ sales are expected to exceed those of the sector this year.
Along with the ongoing increase in oil prices, he noted both the local and international auto industries are challenged by delays in the delivery of cars and auto parts, which may have an impact on demand for vehicles.
According to him, it takes a car firm about three months to fulfill a customer’s request due to supply chain restrictions.
However, Zara anticipates that by the end of 2022, the global supply chain will have improved.
Will things return to normal by the end of the year? Hopefully, but there is no guarantee. But the ongoing improvement in supply in the second half of the year compared to the first would be what we are optimistic about, he continued.
According to Zara, some banks have chosen “to stimulate the economy and continue approving bank loans” by choosing not to yet consider the increase in interest rates issued by the Monetary Board. (