The Philippine vehicle market enjoyed a good start to the year, with sales rising just under 20% to 7,739 units in January compared with 6,456 units sold a year previously.
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Compared with the previous month’s volumes, however, sales declined almost 5% as buyers hooked forward purchases in anticipation of rising VAT (tax) rates in 2006.
Excise duties increased from 10% to 12% on 1 February, but most of the pre-emptive buying was in December. Despite the higher taxes, the industry is cautiously optimistic about this year’s prospects.
The Chamber of Automotive Manufacturers of the Philippines (CAMPI) said last month that the economy should be strong enough to drive the market to above 102,000 units, or 5% more than in 2005. Marketing activity is expected to intensify, to help offset negative influences such as continued high imported used car volume, rising inflation and higher taxation.
The market was driven by strong sales of commercial vehicles, which rose 22.1% year-on-year to 4,679 units. Sales of Asia utility vehicles in particular were strong, with volumes rising 32.1% year-on-year. Demand for the Toyota Innova was particularly high.
Toyota Motor Philippines is targeting sales of 38,000 this year, 7% more than the 35,513 sold last year. In January, the company sold 2,742 vehicles – up 34% year on year, reflecting strong demand for its IMVs.
Mitsubishi Motors Philippines sold 1,067 vehicles, marginally higher. Third-placed Honda fared much better, with sales rising almost 37% to 960.
Tony Pugliese
