AUTO INDUSTRY NEWS

February 2017 auto sales down 11.1% due to new LTO rule

February 2017 auto sales down 11.1% due to new LTO rule image

Brent Co / AutoIndustriya.com | March 09, 2017 16:49

New LTO ruling preventing use of unregistered new vehicles slows down auto sales

Auto sales in February 2017 started strong as consumers rushed to get better deals with confusion on prices increases to be implemented by a looming excise tax hike. It was later slowed down by a department order from the Land Transportation Office (LTO) preventing owners of new vehicles from using their cars pending registration papers implemented mid-month.

Based on the latest report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA), the previous month of February logged a 27,040 unit sales total; an 11.1% decline compared to January.

Compared to last year, it represents a 7.5% gain against the previous year's 25,150 unit total; Passenger Car sales slid 7.2%, while Commercial Vehicle sales experienced gained 16.9%.

Passenger car (PC) sales totaled 9,114 units, covering 33.71% of the market. Commercial vehicles continued to dominate the market at 17,926 units or 66.29% of the market.

The Commercial Vehicle sub-segments were still led by Light Commercial Vehicles (LCV), comprising 61.50% of CV sales with 11,025 units sold; 10.7% lower compared to the last month's 12,340 total. AUV/MPV sales were also slower at 5,725 units, dipping 5% compared to 6,026 last month Truck sales continue to be brisk with more companies investing in brand new light duty to heavy trucks and buses. Light truck sales surging by 11.6%, selling a total of 703 units compared to the previous month's 630 unit total. Category 4 Heavy Duty Truck and Bus sales totaled 330 units (+21.3%) compared to last month's 272 units. Category 5 Heavy Duty Truck and Bus bucked the trend with 143 units sold, (-17.3%) compared to last month's 173 units.

The top five performing manufacturers for the month of February are:

1. Toyota – 12,615 units (46.65% market share)

2. Mitsubishi – 4,745 units (17.55% market share)

3. Isuzu– 1,904 units (7.04% market share)

4. Honda – 1,692 units (6.26% market share)

5. Nissan – 1,524 units (5.64% market share)

"February 2017 sales growth was modest compared to the previous month. Despite supply limitations and fewer calendar days, the automotive industry still continues to serve and satisfy the demand of the market," said Atty. Rommel Gutierrez, CAMPI president.

For the first two months of the year, Toyota Motor Philippines Corporation continues its commanding lead of the market with 47.26-percent. Mitsubishi Motors Philippines Corporation follows in second with 16.86-percent. Ford Motor Company Philippines, Inc. remains in third with 6.99-percent. Honda Cars Philippines, Inc. is in fourth position with 6.75-percent, with Isuzu Philippines, Corp. remains in fifth with 5.62-percent.