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There is a LOT going on in the field of movement. It’s hard to keep up, let alone take in everything that’s happening. But we keep our ears to the ground and focus on the important things.
MINDANAO TEMBLOR
The earthquake that hit Southern Mindanao is a huge disaster. Measuring 7.8 on the Richter scale, it affected close to 750,000 people across the region and resulted in the loss of nearly 80 lives, as of this writing. More than 68,000 homes were reported destroyed or damaged.
Traveling in the region was very difficult aaffected, making several hard-hit towns and villages difficult for aid workers to reach. General Santos International Airport was closed to commercial flights, and flights had to be diverted to nearby destinations. The port of Mabila in Davao Occidental, the ports of Sarangani, and the port of General Santos also suffered major structural damage. Many roads, bridges and highways were also damaged. Early estimates put infrastructure damage at P1.0 billion.
The entire nation and the international community stand with the people of Mindanao as they begin their journey of healing, recovery, and rebuilding. It’s time for the legendary Filipino spirit of “bayanihan” to step up again and help bring the region – and our country — back on its feet.
THE MEETING IS BACK HOME
The Department of Trade and Industry (DTI) has announced that the country’s (Revitalizing the Automotive Industry for Competitiveness Enhancement) program – previously reported to have been dropped in favor of the Electric Vehicle Incentive Strategy (EVIS) – is on the table.
DTI Secretary Ma said. Cristina Aldeguer-Roque, “We don’t stop talking about the incentives we can give. We realize that, of course, electric cars are important now but there are still cars being produced, like the Tamaraw for example and all that.” In addition, Sec. Roque added that there is a need to support vehicle manufacturers of internal combustion engine (ICE) vehicles that are often used by MSMEs and are the backbone of public transportation purposes such as ambulances and police vehicles.
This is a welcome turn of events and could indicate a more inclusive direction for the development of the local automotive industry.
PIMS SETS A NEW RECORD
The 10th The Philippine International Motor Show (PIMS), held last June 4 to 7, gathered a record number of 55,544 visitors – up nearly 40% from the previous one held in 2024 – who entered the halls of the World Trade Center with about 100 vehicles from about 20 member companies of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI). The 26 species shown were presented to the public for the first time.
The CAMPI Board led by Chairman Emeritus Jose Ch. Alvarez and its officials led by President Jose Ma. Atienza deserves credit for organizing such a diverse number of car brands under one roof. In fact, it is what attracted many to this game. There were seven Japanese, seven Chinese and one each from South Korea, the United States and Vietnam. It was an interesting mix of legacy brands and newcomers to the Philippine market. PIMS showcased an exciting number of automotive solutions that meet a wide range of mobility needs – from ICE vehicles to hybrid electric vehicles (HEVs), plug-in electric vehicles (PHEVs), extended electric vehicles (REEVs) and battery electric vehicles (BEVs).
PIMS treats visitors to a fully immersive experience that allows them to see, touch, and feel, learn, test, drive, and book the vehicle of their choice in a structured, safe, and comfortable environment.a familiar environment, and an attractive place.
Well done, CAMPI!
AUTOMATIC SALE TO MEND
The Philippine car market is challenging. It is among the most affected by tincreases in gasoline prices, not only because of higher costs per liter but because of business volatility and consumer sentiment caused by rising prices and recession. Big-ticket purchases are prioritized by businesses trying to recoup major expenses and private individuals trying to preserve their financial position.
Monthly auto sales fell sharply in January this year from seasonally high levels in the last quarter of last year. It began to recover in February, but then war broke out between the USA and Iran at the end of that month. Interestingly, car sales continued to grow in March – mainly from increased demand for new energy vehicles (NEVs), popularly known as xEVs. You can probably hear the rush of shoppers who want to avoid high gas prices by removing inventory from dealer stockyards.
As stocks of xEVs dried up, April sales were down compared to March. Apparently, the production orders forwarded by car manufacturers and distributors at the beginning of the year could not take into account the conflict in the Middle East. So far, procurement has not been significantly affected by the oil crisis; they are always fragile but manageable. It will be remembered that there are many car parts made of oil and other unused materials that are affected by the blockade of shipping lanes. Hopefully, the increase in production orders for xEVs can be met in the coming months.
However, with a still limited range of xEVs, early May sales reports show a glimmer of encouragement. Unofficial figures for total car sales – of CAMPI member companies and other related and unrelated car brands – are reported to be higher than April by around 8%, with most of the movement coming from the sale of ICE models. Due to short supplies, xEV sales are estimated to have fallen sharply to 7,000 units in May from around 12,000 in April and 9,000 in March.
Hopefully, the auto industry is looking at stable sales opportunities going forward, especially due to the expected increase in peace talks between the USA and Iran.
FUEL PRICES STAND
The shock and panic brought about by the sudden rise in oil prices due to the conflict between the USA and Iran was not felt. Before the war, oil prices were US$70 to US$75 per barrel. This rose to a high of around US$120 per barrel at the end of March, mainly in response to Iran closing the Strait of Hormuz. In recent weeks, oil prices have returned to US$100 or less, fluctuating in response to the USA’s announcements of peace talks with Iran. Fortunately, with the most recent announcement of a peace deal last week, prices fell by about 5% to US$80 to US$83 immediately.
The report of the US Energy Information Administration (EIA) last June 9 revealed institutional forecasts – including from major banks such as Citi – project Brent prices to reach $ 70 to US $ 89 per barrel in the fourth quarter as chokepoints resolve. These prices may drop if the peace agreement is passed by July. Although prices appear to remain high for up to six months, no other record highs are expected to last for the rest of the year.
The idea is that oil prices may not return to their pre-war levels until mid-2027. This is a good sign for the global economy, especially for hard-hit countries like the Philippines. As it stands, gasoline prices in the country have dropped from a high of P94.50/liter in April to around P80/liter in May. On the other hand, diesel dropped from P153.70 in April to P85/liter to P90/liter in May. These prices are not quite the same as they were at the end of February, but luckily they are heading in that direction.
These trends in oil prices may give us something to be happy about, but it is better to take a cautious approach in case geopolitics takes another unexpected turn.
As the saying goes, prepare for the worst but hope for the best.
