Date: April 2003

Vehicle Sales Up 34 Percent in First Quarter

A 54 percent increase in the sale of commercial vehicles pushed the total sales of vehicles in the country to 24,177 units in the first quarter of the year, up by 34.4 percent from only 17,985 units sold during the same quarter last year.

In its latest monthly report, the Chamber of Automotive Manufacturers of the Philippines (CAMPI) said that in particular, sales of commercial vehicles went up by 54 percent to 18,923 units in the first three months of the year from 12,283 units a year earlier. This was largely attributed to the pick up in demand of Asian utility vehicles (AUVs), which will enjoy tax privileges only until May 31 this year.

AUVs, which corner around 70 percent of the local automotive market, refer to locally built commercial vehicles with a seating capacity of at least 10 persons. Starting May 31, the Bureau of Internal Revenue (BIR), the government's main tax collection agency, will implement its Revenue Regulation (RR) 4-2003 that will impose excise taxes on automobiles including the previously tax-exempt AUVs.

The implementation of the regulation would push prices of AUVs by 35 to 50 percent higher. This is because it imposes a 35 percent excise tax for vehicles with an engine size of 1,601 to 2,000 cc for gasoline and 1,801 to 2,300 cc for diesel and 50 percent for vehicles with an engine size of 2,001 to 2,700 cc for gasoline and 2,301 to 3,000 cc for diesel. AUVs belong to both categories.

Analysts, however, believe that with the implementation of RR 4-2003, Filipino buyers will again patronize passenger cars whose sales have seriously suffered because of the popularity of AUVs.

Sales of passenger cars slowed by 7.9 percent to 5,254 units in the first quarter of the year from 5,702 units sold during the same quarter last year.

Vehicle Sales, 2003 Q1
	Units	% Share
Toyota	6,645	27.5%
Honda	5,052	20.9%
Isuzu	3,763	15.6%
Mitsubishi	4,105	17.0%
Nissan/Universal	1,840	7.6%
Ford	1,276	5.3%
Others	1,496	6.2%
Total	24,177	100.0%

Toyota Motors Philippines Corp. (TMPC) led all carmakers in sales and accounted for 27.5 percent of the market during the surveyed period. Its combined sales of commercial and passenger vehicles reached 6,645 units in the first three months of the year.

Other leading carmakers in terms of sales during the period are Honda Cars Philippines Inc., which sold 5,052 units; Mitsubishi Motors Philippines Corp., 4,105 units; Isuzu Philippines Corp., 3,763 units; Nissan Motor Philippines; 1,840 units; and Ford Motor Co., 1,276 units.

CAMPI is one of the six associations of automotive manufacturers and distributors in the Philippines under a larger umbrella organization called Philippine Automotive Federation Inc. (PAFI). Aside from CAMPI, the other association that releases data on sales of vehicles is the Truck Manufacturers Association Inc. (TMA).

Click Here to View Complete Listing of Special Reports