Vehicle sales down double-digits
Domestic auto industry sales plunged by 21.7 percent in June, extending a year-to-date fall that has been blamed on higher prices due to a tax reform law.
Data released by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) placed sales for the month at 29,350 units, down from 37,479 a year earlier.
June’s 21.7-percent drop was steeper than May’s 13.7 percent. Sales for the year so far have contracted every month, except in January when a 4-percent uptick was recorded.
Year-to-date vehicle sales rose to 171,352 units, 12.5 percent lower than 195,772 units sold last year.
Observers have blamed the decline on the implementation of the Tax Reform for Acceleration and Inclusion law, which raised taxes on cars, among others, in exchange for lower personal income tax rates.
CAMPI President Rommel Gutierrez said consumers were becoming more selective in parting with their money as inflation continued to rise.
“This is a typical consumer’s behavior pattern when [the]economic condition is a bit gloomy due to less favorable economic indicators,” he said.
“However, we remain optimistic that our sales will recover in the coming months, and hopefully a sustained growth by the end of the year,” Gutierrez added.
Both the main passenger car and commercial vehicle segments declined, with the former plunging 42.6 percent to 7,766 units in June from 13,525 a year earlier.
Commercial vehicle sales fell 9.9 percent to 21,585 units from 23,954 as declines for Asian utility vehicle, light commercial vehicle and light trucks offset truck and bus gains.
Year to date, passenger car sales were down 16.5 percent to 55,746 units from 66,788 in the comparable six-month period, while commercial vehicle sales fell by 10.4 percent to 115,606 units from 128,984 previously.
Toyota Motor Philippines Corp. remained the industry leader year to date with a 42.7-percent market share, although overall sales were down 14.7 percent from last year.
Mitsubishi Motors Philippines Corp. was second with a 19.55-percent share and a 3-percent year-on-year sales drop, followed by Nissan Philippines, Inc. whose 7.72-percent share was driven by a 24.1-percent sales gain from last year,
Rounding out the top five were Ford Motor Company Philippines, Inc. (7.3 percent market share; sales down 25.1 percent) and Honda Cars Philippines, Inc. (7.01 percent; sales down 12.9 percent).
CAMPI, which posted 18.4-percent sales growth to 425,673 units in 2017 as buyers moved to purchase cars ahead of the Train law’s implementation, earlier this year said it was cautiously optimistic of flat growth.
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