Vehicle sales decelerate for 3rd month in April

Vehicle sales continue to be sidetracked by the higher automobile taxes imposed under the TRAIN law, extending its losses in April.

A joint report released yesterday by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed vehicle sales decelerated by 9.3 percent to 111,620 units in the January to April period from 123,064 units in the same period last year.

Sales of both passenger cars and commercial vehicles declined during the four month period. The passenger car segment posted a 7.2 percent drop, while the commercial vehicle segment registered a steeper 10.4 percent plunge.

For the month of April alone, vehicle sales among CAMPI and TMA member brands slumped 9.3 percent to 25,583 units from 28,216 units in the same month in 2017.

This is the third straight month that CAMPI and TMA’s monthly sales have been on a decline compared to the same month in the previous year, which has been attributed mostly to the new excise tax regime.

Majority of the 10 biggest CAMPI and TMA member firms have posted lower sales in the four-month period, including market leader Toyota Motors Philippines Corp., with sales plunging 11.5 percent year-on-year to 47,307 units.

Toyota, however, remained the market leader as of end-April, with a share of 42.38 percent, followed by Mitsubishi Motors Philippines and Ford Motor Co. Philippines with a share of 19.78 percent and 7.42 percent, respectively.