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Philippines: Automakers see sales recovery in 2019
MANILA, Philippines — Vehicle makers and assemblers are expecting a sales recovery in the market next year as consumers would have adjusted to price changes caused by the new excise taxes.
In an interview, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez told reporters that they are projecting a conservative 10 percent growth in vehicle sales in 2019.
“We are positive about next year. So whatever is the figure for this year, we’ll project a better figure next year,” Gutierrez said.
CAMPI earlier said it expects sales for this year to drop between 10 percent to 15 percent this year as demand continue to weaken due to rising inflation and higher vehicle excise taxes.
A joint report report by CAMPI and the Truck Manufacturers Association Inc. (TMA) showed that aggregate sales reached 261,057 units as of end-September, 14 percent lower than the 302,869 units sold in the same period last year.
Gutierrez described 2018 as a transition year, with a number of factors weighing in on vehicle sales such as the excise tax and inflation, among others.
“By this time, I think the market has already adjusted in terms of pricing. It will already be stable,” Gutierrez said.
“We are starting to see positive signs now,” he said.
Vehicle sales hit its lowest last July with a 24.1 percent drop. Sales picked up in August with an 8.16 percent gain, but fell anew in September.
“We initially were expecting the drop will only be in the first and second quarter, but it continued,” Gutierrez said.
“From our perspective, first and second quarter could be attributable to the excise tax, not the excise tax itself, but the anticipation at that time. It’s the uncertainty at that time of what will come up.”
He pointed out that the lower vehicle sales this year may also be attributed to the higher base set by the “abnormal” increase in sales in the last quarter of 2017.
In 2017, vehicle sales accelerated by 18.4 percent to 425,673 units, exceeding CAMPI’s full-year target of 400,500 units.
Moreover, CAMPI vice president Dante Santos emphasized the impact of the country’s economic conditions on vehicle sales such as higher interest rates.
“You cannot really debate on this. These are forces beyond our control,” he said.
Source: https://www.philstar.com/business/2018/10/31/1864536/automakers-see-sales-recovery-2019#A9EAUTAG9zHq3VrV.99