Car sales down 17.4% in Jan

Car sales declined by 17.4 percent, or by 1,212 units, to only 5,736 units in January from 6,372 in the same period last year as demand slackened sharply due to the sharp depreciation of the peso against the dollar and a rise in interest rates spawned by the political uncertainty last month.

Month-on-month, vehicle sales fell by 10 percent from December’s 6,372 units.

"The decline in vehicle sales was due to the political upheaval last month as well as the uptick in interest rates and the depreciation of the peso," Mario de Grano, Secretary General of Chamber of Automotive Manufacturers of the Philippines Inc. (Campi). Demand for passenger cars experienced the sharpest drop, plunging by nearly 32 percent to only 1,613 units last month from 2,366 units a year ago.

Month-on-month, however, passenger car sales declined by only 0.3 percent to 1,613 units from 1,608 units in December.

Demand for commercial vehicles, on the other hand, tumbled by 10 percent to 4,123 units last month 4,582 units a year ago and down 13.5 percent from December last year’s 4,764 units.

For the second quarter of the year, De Grano expects car sales to improve substantially due to the peaceful political change and the strengthening of the peso against the dollar.

But De Grano expressed concern on the increase in tariff rates or trucks to 10 percent from three percent as effected in EO 334.