Car sales slow down in February

MANILA, Philippines — The country’s new tax regime has started taking its toll on the automotive industry as sales slowed down last month.

A joint report released by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) yesterday showed combined sales of its member companies declined 3.2 percent to 26,176 units from 27,040 units in February last year.

This brought vehicle sales in the first two months of the year to 57,821 units, a mere 0.6 percent improvement from 57,465 units sold in the same two-month period in 2017.

“The slight decrease in February sales compared to the same period last year suggests that the market is still adjusting to the new excise tax regime,” CAMPI president Rommel Gutierrez said.

Among the 23 CAMPI and TMA members, 11 recorded sales drops in February from the previous month, including market leader Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp. which saw a decrease of 25.7 percent and 10.3 percent, respectively.

For the two-month period, meanwhile, seven CAMPI and TMA members ended their sales lower compared to the same period last year.

Sales of passenger cars last month dipped 10.1 percent to 8,192 units from 9,114 units in February 2017, while sales of commercial vehicles finished flat at 17,984 units.

Despite the slowdown last month, Gutierrez, however, noted that sales prospects for the year remain positive “as demand continues to be strong.”

Prior to the implementation of the first tax reform package at the start of the year,  automotive companies were already bracing for the potential impact of the new tax regime on the sector as it included higher automobile excise taxes.

Toyota remained the industry leader as of end-February with a market share of 39.84 percent, followed by Mitsubishi with 22.17 percent.

Ford Motor Co. Philippines Inc. came in at third with a market share of 7.95 percent, followed by Honda Cars Philippines Inc. and Isuzu Philippines Corp. with 7.16 percent and 4.61 percent, respectively.