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Thursday, June 10, 2004
Tax changes cause drop in RP auto sales
THE passage of the bill that shifted the basis of the excise tax on vehicles from the engine size to sales value has affected the automotive industry more than the increasing prices of fuel.
According to Honda Cars Cebu Inc. general manager Tito Solomon, the modification on the excise taxes on vehicles, which was passed in the fourth quarter of last year, resulted in an 11 percent decline in sales of the industry.
This was mainly due to the decline in the sales of commercial vehicles, which include Asian utility vehicles (AUV), sport utility vehicles (SUV)and pick-ps, he said.
On the sidelines of the launching in Cebu of the Honda City 1.5 liter, Solomon told Sun.Star that studies have shown the country’s vehicle market does not get easily affected by increases in oil prices.
But the change in the basis for the excise taxes slapped on vehicles, especially AUVs, decreased sales of the industry by 33 percent in April this year from April last year, and 32 percent on a year-to -date comparison, Solomon said.
Banner year
“Last year was a banner year for assemblers of SUVs and AUVs,” he said.
Passenger car sales, however, increased by 119 percent in April this year from a year ago, Solomon said.
The car executive said Honda remains the second car company in the country in terms of sales as of May, cornering some 14 percent of the market.
Mitsubishi closely follows.
Toyota still holds majority of the market, accounting for 36 percent of the 34,578 total vehicle sales nationwide, Solomon said.
Cebu group
As regards Honda sales, he said the Cebu group, which is composed of five offices—Nivel Hills, Man-daue City, Cagayan de Oro, Negros Occidental and Iloilo—contributed some 8.7 percent to Honda Philippines’ total sales nationwide.
The Cebu group, and another group in Manila, are members of the Ayala group of companies.
Honda has 20 group dealers in Manila. JBN
(June 10, 2004 issue)
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