The coronavirus 2019 (COVID-19) has drastically impacted the automotive industry in mid-March. But now, the automotive sector is slowly shuddering back to life, buoyed by positive sales figures coming from a historic collapse in April.
The joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) reported 15,578 units sold in June, up from 4,788 units in May and significantly above the paltry 133 units sold in April. Association of Vehicle Importers and Distributors (AVID) narrated the same findings of an upward trend. In June, its 21-member companies representing 26 global brands sold 3,697 vehicles, a 198-percent increase compared to May’s 1,239 units sold.
Indeed, the industry is on its way to recovery but the market is still reeling from the socioeconomic effects of the global pandemic. To have a better grasp of the long road towards recovery, a diverse panel of motoring pundits gathered for the third episode of Wheels Web Series titled “A responsive, responsible mobility future,” last July 15.
The discussions were lead by Philippine STAR Wheels editor Manny delos Reyes, Pilipinas Shell Petroleum Corporation VP for retail business Randy Del Valle, Lica Auto Group CEO Tey Sornet, and BPI Family Savings Bank head of retail loans Dennis Fronda. Meanwhile, Philippine Star Wheels columnist and Business World Velocity editor Kap Maceda Aguila moderated the dialogues.
The way to recovery
The economy is slowly reopening, and people are going back to work. Yet public transportation operates at limited capacity in observance of social distancing measures. Still, some shun the commute and continue their jobs at home as remote workers. But for those who brave the odds, the choice is between relying on public mass transport or deciding to buy his/her own car.
“The government is erring on the safe side when it comes to allowing the roll out of all kinds of public transportation right now. But it is affecting everything, on a personal and a business level. Everyone had to be mobile during this pandemic and I think a lot more has to be done in terms of providing a safe and efficient mass transportation to the public,” shares delos Reyes.
“There is a big demand for cars in the market right now. Most people are health conscious and are scouting to buy a car, especially entry-level models. This increased demand could help jumpstart the economy, but it cannot move unless banks start to process credit applications,” explains Sornet.
Helping hands, forging partnerships
Alongside auto manufacturers, financial institutions and energy providers play an important role in revitalizing the auto industry. Banks are stepping up to fill the need for loan applications and financing transactions now that there is an increased interest in car purchases. Meanwhile, energy providers have also been hard at work in order to guarantee that essential services remain uninterrupted.
“We didn’t stop processing applications even during the ECQ. We continue to espouse responsible lending and responsible borrowing. We continue to process loan proceeds, it keeps our partner dealerships afloat, it helps them take in more inventory and roll their capital. We have been supportive of the industry and of the need of our fellow Filipinos to have their own vehicles,” says Fronda.
“We started with Taal in January. During the time of COVID-19, apart from helping our site staff and service champions, we partnered to give free fuel for hospitals, fuel discounts and food for frontliners, and purchased produce from farmers. This bayanihan spirit was able to reach out to 700,000 Filipinos. We are proud of our dealer network and stations nationwide that has worked with local hospitals and communities,” concludes Del Valle.
Powered by the Philippine STAR’s Wheels and BusinessWorld’s Velocity, Wheels Web Series is a three-part webinar about the local auto industry in the age of the pandemic. Watch the previous episodes and get the latest from the auto industry when you follow Wheels on Facebook https://web.facebook.com/PhilStarWheels/ or visit https://wheels.ph/.
