Vehicle sales off to fast start in January

Car sales continued to rise in January, expanding by 15.5 percent to 34,060 units from 29,499 units in the same period last year, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

The growth was driven by commercial vehicle sales, which increased by 16.5 percent to 25,614 units from 21,993 units in the same period last year. This segment accounted for 75.20 percent of total vehicle sales.

Similarly, passenger car sales registered a 12.5 percent increase to 8,446 units from 7,506 units. This category accounted for nearly 25 percent of total vehicle sales.

For this year, CAMPI’s conservative forecast is 468,300 units, a nine percent increase from last year’s sales of 429,807 units.

CAMPI president Rommel Gutierrez said there are more reasons for optimism this year despite inflation risks and the imminent taxation of double cap pickups.

“We are starting 2024 with a positive business and consumer confidence outlook. We see new model introductions and the expansion of electrified vehicle line-up especially in the hybrid electric vehicle segment, and more brands coming into the market,” Gutierrez said, adding that these are all indications of a strong and vibrant auto market.

CAMPI said it is slated to hold its 9th Philippine International Motor Show in the second half of the year.

“This means that the 2024 performance could well exceed CAMPI’s initial forecast and reach 500,000 units as motor shows generally boost sales,” the group said.

Toyota Motor Philippines Corp. (TMP) remained the market leader in January with a 47-percent market share, selling 16,093 units.

This was followed by Mitsubishi Motors Philippines

Electric vehicle (EV) industry players and clean air advocates are calling on the National Economic and Development Authority (NEDA) to lead the push to accelerate efforts to promote “green traffic” through the inclusion of e-motorcycles as part of those enjoying tax exemption as the agency starts its review of an executive order that modified the tariffs on EVs.

With the NEDA tasked to start the review of the implementation of EO 12, EV stakeholders urged NEDA Secretary Arsenio Balisacan to lead efforts to move toward green traffic and reduce the reliance on vehicles powered by gasoline through amendments in the order.

Electric Kick Scooter Philippines co-founder and chairman Tim Vargas said “it is high time that e-motorcycles receive tax breaks, as it is a privilege that was initially deprived of them.”

Under EO 12, which took effect on Feb.20 last year, import duties on EVs and parts and components were reduced to zero from the previous five to 30 percent.

The reduced tariff is in effect for a period of five years.

E-motorcycles, however, were excluded from those benefiting from the tariff suspension, and are currently subject to a 30 percent tariff rate.

“It’s important to give them what’s due them. We’re looking forward and we also laud the humility of the NEDA, Rep. Joey Salceda, and some people in the executive branch that they saw that this review is an opportunity to improve what has been delivered before,” Vargas said.

“But hopefully, moving forward, we need to have more stakeholder engagement and try to understand further rather than making this impulsive decision on just hastily passing things rather than being more constructive,” he said further.

EO 12 was issued to help complement the Electric Vehicle Industry Development Act (EVIDA), which seeks to promote innovation in clean energy and sustainable transportation while pushing for the development of the EV industry to create jobs.

Lawyer and mobility advocate Vin Ching also called on the government to help make the shift to EVs affordable for the Filipino working class.

“We urge the government to consider the positive impact, especially that the inclusion of e-motorcycles will benefit those in the working class, those who need transportation,” he said.

As motorcycles account for the bulk of vehicles in the country, he said the inclusion of motorcycles in the list of EVs benefiting from tax breaks will give “true meaning” to the essence of EO 12.