A group of car importers said sales fell 11 percent in the first half from a year ago because of higher petroleum prices and interest rates.
The Association of Vehicle Importers and Distributors said members sold 43,138 vehicles from January to June, down from 48,344 units in the same period in 2017.
Avid president Ma. Fe Perez-Agudo said the decline in sales could not be attributed to the implementation of the Tax Reform for Acceleration and Inclusion law alone.
“Higher petroleum prices raise the total cost of owning vehicles and the indirect impact of higher interest rates that affect buyer preferences and priorities. Some also advanced their purchases late in 2017 to take advantage of the lower prices and lower interest rates,” she said.
“The additional excise tax has had an immediate impact on the passenger car and local commercial vehicle segments. However, tax exemptions on hybrid and electric vehicles have placed Avid in a favorable position to break into this emergent market. The new tax bracket on luxury vehicles is also expected to make this segment very competitive,” Agudo said.