THE GHOST IS CLEAR

Last month was an expected bump in the road for auto sales, but there were other things at play

- Vince S. Socco

THE HUNGRY ghosts came to roost. This year, the so-called “ghost month” fell from Aug. 23 through to Sept. 21; the Hungry Ghost Festival itself was on Sept. 6. This is a traditional Chinese occasion when ghosts and spirits — including those of deceased ancestors — are said to rise from the lower realm to visit family or seek victims among the living. To promote good luck and harmony during this period, some practices are observed, such as avoiding the start of construction, signing of contracts, undergoing major surgery, and the purchase of condos — or automobiles.

New vehicle sales reports for August seem to suggest that many car buyers may have had their “third eye” on the observance of the ghost month. In my many years in the automotive industry, this tradition has been a go-to reason by auto dealers and salespeople for low sales. In fact, it is already incorporated into the seasonality of the sales cycle.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), Truck Manufacturers Association (TMA), and the Association of Vehicle Importers and Distributors (AVID) reported total sales of 35,944 units in August. This is the second-lowest monthly sales turnover for 2025, higher only than April. This is 8.4% lower than sales in August last year, and represents a 6.6% decline compared to July 2025. This tells quite a tale. It did not help that the ghost month started on the last week of the month when car deliveries usually peak — accounting for 30% to 40% of the month’s sales. Buyers may have opted to push back deliveries to September to be on the safe side of tradition. On top of that, the two national holidays also resulted to a shorter sales month than usual.

If unofficial reports by nonmember importers and distributors are considered, sales in August 2025 are at 37,444 units, which is a lesser drop of 6% versus the same month last year.