Cars selling briskly ahead of new tax setup
Vehicle sales went up 14.1 percent in June, keeping the car industry on the right track as it races toward its goal this remaining half of the year, data from automotive and truck manufacturers showed.
According to a joint report of the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association (TMA), member companies sold 37,631 units in June, higher compared to the same month last year when they sold 32,993 units.
The report showed that this led auto sales to achieve a 17.1 percent increase in the first semester of the year as 196,164 units were sold against 167,480 units in the same period last year.
The groups are targeting to sell 450,000 units this year.
While they have been reporting monthly increases in sales, the latest data comes a month after the House of Representatives passed House Bill 5636, the Duterte administration’s first tax reform package that contains provisions for higher excise taxes for car purchases.
Campi, however, did not say if the growth for the month of June could be attributed to customers who wanted to take advantage of the relatively lower prices before the bill could kick in next year. The Senate’s version of the first package, filed as Senate Bill 1408, is currently being deliberated.
“The overall sales last June is relatively higher compared to that of May due to the well-maintained inventory levels helping the prompt delivery of vehicles among the major players,” Campi president Rommel Gutierrez, who is also a top executive of Toyota Motor Philippines Corp. (TMP), said in a statement.
“All these factors led to our improved sales in June 2017. In addition to a good stock level, manufacturers maximized ‘dealer push’ that brought higher sales specifically to their key models,” he added.
Both passenger cars and commercial vehicles segments grew, with the latter accounting for over 65 percent of the market share in the first six months of the year.
The passenger car segment sold 13,677 units, a 14.4-percent growth over June last year. Sales for the first six months reached 67,180 units, a 7.4-percent increase from 62,560 units previously.
The commercial vehicles segment sold 23,954 units in June, climbing 13.8 percent over the same period last year. From January to June, this segment sold 128,984 units, or a 22.9 percent jump from the same period in 2016.
TMP led the first half of the year in terms of sales, accounting for nearly half of the market share or a total of 43.7 percent. Mitsubishi Motors Philippines Corp. followed with 17.61 percent; and Ford Motor Company Philippines in third with 8.51 percent. Isuzu Philippines Corp. is fourth with 7.25 percent, while Honda Car Philippines Inc. trailed at fifth with 7.03 percent.
