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Business & Economics News Retail

Philippines experiences First Drop in Car Sales after Seven Years

First Drop in Car sales in the Philippines suffer for the first time in seven years. Prices on gasoline, cars and goods are on an all-time high.

Total Sales in the first nine months of 2018 dropped a solid 13.8 percent as consumers are becoming more reluctant to purchase costly cars partly because of the current inflation ravaging across the country, said the president of Toyota Motor Philippines Corp. Satoru Suzuki.

While Toyota is the leading carmaker in the Philippines owning a market share of more than 40 percent, it suffered a devastating 17.6 percent drop from car sales during the nine months’ period.

In addition to Toyota’s drop, passenger car sales dropped by 20.2 percent, and in July it sunk to a 45 percent low from 6,975 units to 12,701 units sold compared to last year, while commercial vehicle sales fell by 10.

Mitsubishi Motor Philippines Corp. is also affected, facing a drop in sales by 19.45 percent.

It is possible that these sales are influenced by Filipinos currently preferring to commute over actually being in possession of their own means of transportation. Bus sales of the category IV and V have seen a growth in sales by 13.1 percent and 18.3 percent respectively.

Maintaining a vehicle in the Philippines is now very costly ever since the Excise Taxes hike have taken effect, and therefore, in the long run, it is still cheaper to pay a bus transport to travel long distances.