Car and truck manufacturers reported a slower sales growth in January, showing signs that the now more expensive cars have dampened consumer demand.
According to joint data from the Chamber of Automotive Manufacturers of the Philippines, Inc. (Campi) and Truck Manufacturers Association (TMA), car sales of member companies in January grew by only 4 percent to 31,645 units, from the 30,425 units sold in January 2017.
The latest growth figures show signs that the industry may already be feeling the impact of the TRAIN law, which was passed last year to lower the personal income tax while imposing higher consumption taxes on goods such as cars.
“While this is considerably low compared to the growth rate of January 2017 (27 percent up versus January 2016), we still consider January 2018 sales as satisfactory and a good start for the auto industry,” said CAMPI president Rommel Gutierrez in a statement.
The sale of passenger cars fell 10.9 percent last month to 9,790 units from 10,984 units in January 2017. Commercial vehicles, which accounted for more than 60 percent of the market, grew 12.4 percent to 21,855 units in January from 19,441 units in the previous comparative period.
Toyota Motors Philippines Corp. still led the market despite a 9.1-percent decline in sales.