Car sales grew only by 8.7 percent in August, the slowest in four months, 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 35,309 units in August, an 8.7 percent increase from the 32,472 cars sold in the same month in 2016.
The growth is the slowest since April this year, during which time Campi and TMA reported a year-on-year growth of only 4.8 percent.
In the first eight months of the year, car sales grew 16.7 percent to 268,424 units from 229,919 units sold in the comparative period in 2016.
The slow output in August comes in spite of expectations that there would be a boost in sales as people rush to buy cars to avoid the proposed hike in auto excise tax.
The Duterte administration’s first comprehensive tax reform package includes a proposed hike on the excise tax slapped on cars. The package’s version in the lower house, filed as House Bill 5636, was passed in May.
Still, Campi president Rommel Gutierrez said the collective performance of the member companies remained “stable.”
“August sales result remained stable, driven by the good sales performance of key models from major manufacturers. In addition to this is the competitive promotional support and marketing activities,” he said in a statement.
Both passenger car and commercial vehicle segments grew in August, although the former only inched forward with a growth rate of 1.1 percent. The latter grew 12.7 percent.
In particular, 11,258 passenger cars were sold in August, barely growing from the 11,136 units sold in the same month the previous year. This brought year-to-date sales for this segment to 7.3 percent to 91,139 units compared to the same period last year.
Commercial vehicles had a better performance in August, selling 24,051 units from 21,336 units previously. From January to August, this segment, which accounts for over 60 percent of the car market, sold 177,285 units, growing 22.3 percent from 144,993 units sold during the comparative period last year.
Toyota Motors Philippines Corp. remained the market leader with a share of over 44 percent of total sales, followed by Mitsubishi Motors Philippines Corp. with 17.68 percent. Ford Motor Company Phils. Inc. was third with 8.51 percent, trailed behind by Isuzu Philippines Corp. with 6.84 percent and Honda Cars Philippines Inc. with 6.71 percent.