Vehicle sales are poised to recover in the fourth quarter of 2021 and pick up momentum well into 2022, according to investments and banking executives.
Johnny Fetalvero, House of Investments (HI) senior vice president and Car Business Operations head said in a statement several factors will work in favor of improved auto sales.
These include the speed of the new coronavirus disease 2019 vaccination rollout, reinvigorated cash remittances, steady lifting of restrictions, and election spending.
HI has several dealerships of Honda, Isuzu and Geely brands.
Fetalvero said increased economic activities and consumer spending would sustain the momentum tin 2022.
Fetalvero said auto purchases may have shifted to low gear with the record levels of active virus cases in March this year, and the subsequent reimposition of the expanded community quarantine .
“But the Filipino spending and revelry culture in the Christmas season is expected to shift auto sales to fourth gear,” he said.
According to HI, inquiries with car dealers last year only slipped by 20 percent. But inquiries through their social media platforms increased during the period.
HI also said Filipinos also feel safer using their own a car rather than commute to get where they need to be during the pandemic.
Ramil De Villa incoming head of the Consumer Lending Group of the Rizal Commercial Banking Corp. said the bank noted an increase in the purchase of refinanced cars during the first few months after the lockdown back in 2020, while the purchase of new cars gained momentum in the fourth quarter of the same year.
De Villa echoed Fetalvero’s insights on the recovery of auto sales late this year.
“I’m confident the normal uptick in Q4 will again be observed,” De Villa said.
RCBC and the HI are part of the Yuchengco Group of Companies.
