Car and truck manufacturers saw their sales decline for the third month in a row, as the industry still can’t run past the shadow cast by the TRAIN law’s higher tax rates.
Based on the joint data from the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA), car sales dropped by 11.9 percent to 25,583 units in April from 29,038 units in the same month a year ago.
This narrows the sales decline seen by member companies so far, following the 22.8-percent drop in March, which was the largest year-on-year decrease.
Sales have been sliding since February this year. In January, sales rose 4 percent year-on-year.
The latest report brings the car sales of Campi member companies to 111,620 units in the first four months of the year, a 9.3- percent decline from 123,064 units in the same period in 2017.
Commercial vehicles, which account for more than 60 percent of the market, led the decline last month. Sales under this segment fell 18.3 percent to 15,673 units year-on-year from 19,176 units previously.
Passenger cars, which account for the remaining slice of the market, inched up 0.5 percent to 9,910 units.
Year-to-date, commercial vehicles sales dropped 10.4 percent to 72,803 units. Sales of passenger cars slid 7.2 percent to 38,817 units for the first four months of the year.
The tax reform law lowered personal income taxes but imposed higher consumption taxes on goods such as sugary drinks and automobiles.
Because of the TRAIN law’s higher excise tax rates, prices of most cars have increased. However, the measure lowered the tax rates imposed on luxury vehicles.
Toyota Motors Philippines Corp. remained the market leader for the first four months of the year, but even the country’s largest car company suffered a 11.5- percent drop in sales.
Mitsubishi Motors Philippines Corp., which had the second largest sales year-to-date, grew 1 percent. Ford Motor Company Phis. Inc. trailed behind at third place, suffering from a 20.2-percent drop in units sold.