Car sales poised for double-digit growth in 2021: Fitch
The local automotive industry is poised for double-digit
growth as demand gets back on track this year.
Based on a report published by Fitch Solutions Country Risk and Industry Research, car sales in the Philippines is expected to expand by 21.5 percent due to base effects, demand recovery, and the introduction of new models/variants.
The Fitch report includes an assessment of data coming from the Association of Southeast Asian Nations (Asean) Automotive Federation.
It further pointed out that local commercial vehicle sales would balloon by 23 percent this year and the next, while passenger vehicle sales are seen to grow by 18 percent on the back of the government’s infrastructure program, as construction of roads and bridges are rolled out.
Based on data reported by the Car Manufacturers Association of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA), vehicle sales for 2020 showed a 39.5 percent decline year-on-year, just seven percent below industry target for the year of 240,000 units.
Broken down, commercial vehicle sales in the country posted a contraction of 40.9 percent while passenger car sales also showed a decline of 36.2 percent for the same period.
Meanwhile, imported vehicle sales posted a 41 percent contraction according to data from the Association of Vehicle Importers and Distributors (AVID). Imported light commercial vehicle sales saw a 37.6 percent decrease while imported passenger car sales registered a 46 percent decline.
Despite the outlook for car sales being rosy for this year, car owners should watch out for the risks involved with owning a vehicle. Stronger and more frequent typhoons, destructive floods, auto theft, or road accidents must be taken into account if one has a car or is planning to own one.
According to Malayan Insurance Co. Inc., a comprehensive motorcar insurance should be equipped with compulsory third-party liability (CTPL), own damage and theft, voluntary third-party liability on bodily injury and property damage, auto personal accident insurance, and should also cover damages from acts of nature (AON), loss of use, as well as strikes, riots and civil commotions. Malayan’s Automaster comprehensive car insurance is available through www.malayanonline.com.
Car insurance should likewise protect the vehicle owner from financial loss arising from total loss or damage. It will give them peace of mind knowing that their vehicles are insured for its full value when collision or overturning arises.
The non-life insurance firm is offering its newest add-on, Return to Value (R2V) insurance, a rider for its Auto Master product which aims to minimize the risk for car owners. R2V will pay for the difference between the original invoice car price and agreed value at the time of loss due to collision or overturning.
Malayan Insurance is the leading non-life insurance company in the country, and is a member of the Yuchengco Group of Companies (YGC).