MANILA, Philippines — Toyota Motor Philippines Corp. (TMPC) expects sales to rise next year, reversing this year’s decline as demand for vehicles is expected to regain strength.
In an interview, TMPC president Satoru Suzuki said the company expects sales to recover next year as demand for vehicles increases.
“We expect a recovery next year, but not as much as the past growth level. Maybe single percent growth because our focus is for the first half next year, we will still keep the same level as this current level. But maybe sales will start picking up by the second half. So, that’s why we expect a minimal growth for the whole of next year,” he said.
For this year, Toyota Motor expects sales to drop by 10 percent.
Last year, TMPC sold 184,000 units.
As of end-October, TMPC’s sales reached 124,329 units, down 16.7 percent from 149,333 units last year.
“This year’s lower demand is caused by tax increase, together with rush demand happening last year. Some partial demand for the year moved to last year. So, as a result, demand for this year was reduced,” Suzuki said.
Apart from the higher excise tax imposed on vehicles under the Tax Reform for Acceleration and Inclusion Law which took effect earlier this year, Suzuki said the high inflation rate has also affected demand for vehicles with households opting to save money and spend only for basic goods.
He said as the country’s economy improves, this year’s situation is seen to change next year, with more consumers expected to start spending for big ticket items like cars.
To grow vehicle sales, he said TMPC is making it
easier for consumers to pay for cars through a tie-up with a financing company.
He said TMPC is also undertaking marketing activities by offering low downpayment and low interest rate for vehicle purchases.
In addition, he said TMPC intends to continue to expand its dealership network to reach more customers.
He declined to provide a number of new dealerships to be opened next year as the plan is still being finalized.
To date, TMPC has 69 dealerships spread out in the country.