Car importers saw a slight decline in sales for the first three months of the year, which was attributed to the short-term effects of the TRAIN law on consumer demand.
The Association of Vehicle Importers and Distributors Inc. (Avid) said the sales of its member-companies slid 2 percent to 22,758 units in the first quarter, down from the 23,317 units sold in the same period last year.
The prospects of the car industry in general have been dampened by the TRAIN law, the Duterte administration’s first comprehensive tax package that took effect January this year. The tax reform law lowered the personal income tax but imposed higher consumption taxes on goods such as sugary drinks and automobiles.
Earlier, the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and the Truck Manufacturers Association (TMA) reported an 8.5-percent decline in sales in the first three months. Campi and TMA account for the larger chunk of the vehicle industry compared to Avid.
“Despite the market challenges, we remain resolute that the stabilizing market condition and the influx of new products and services will serve as ample boost as we wind up for a stronger 2018,” said Avid president Ma. Fe Perez-Agudo.
Avid said passenger cars appeared to be “less volatile” when compared to light commercial vehicles.