AUTO SALES fell 24.1% year-on-year in July, according to a joint monthly report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA).
According to the sales report released Friday, sales for the month totaled 28,038 units, against the 36,951 units sold a year earlier. The July sales are also down 4.5% compared with June.
In the seven months to June, auto sales dropped 14.4% year-on-year to 199,628 units.
CAMPI is one of two automotive associations that releases data on auto sales, with a membership consistin of auto companies that assemble locally. The association’s sales figures reflect the state of the market for mass-market cars, compared to higher-end cars which are usually imported.
Commercial vehicle sales, a proxy for durable-goods investment and broader economic activity, fell 13.1% year-on-year to 21,063 units in July. This brought year-to-date commercial vehicle sales to 136,669 units, down 10.8% from a year earlier.
The report did not mention the reason for the slowdown, but the auto industry has been expecting a drop in vehicle sales this year following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) program in January.
The tax reform program imposed higher excise taxes on vehicles, with those costing P600,000 and below being taxed 4%, up from 2%. The tax on cars priced between P600,000 and P1 million was adjusted to 10%, from the previous charge of P12,000 plus 20% of the amount in excess of P600,000.
Toyota Motors Philippines, which had a market-leading share of 38%, said buyers front-loaded their orders late last year in anticipation of the TRAIN Law.
The company reported a 14% drop in sales of Toyota vehicles to 73,136 units in the first half of the year.
The company expects demand to normalize by the fourth quarter, which will restore the industry to a growth track in 2019. — Arra B. Francia

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