As the automotive vehicle industry exceeds its target for 2016, next year will be a “very challenging” year for car makers, Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) President Rommel Gutierrez said.
“2017 is a very challenging year,” Gutierrez told reporters Monday.
“2016 is a very good year. It’s exceeding our expectations,” he added.
The CAMPI head, however, declined to comment on whether the industry expects slower growth for 2017.
Since 2012, total sales volume of CAMPI and Truck Manufacturers Association (TMA) has been expanding by double-digit in five consecutive years.
Sales of CAMPI and TMA members in 2012 grew by 11 percent; 16 percent in 2013; 30 percent in 2014; and 23 percent in 2014.
As of November this year, 11-month sales of CAMPI and TMA has accelerated by 24 percent.
It is also in the last five years the industry posted continuous record-sales, according to Gutierrez.
The domestic automotive vehicle industry targets to sell a total of 370,000 units at end-2016, higher by 14 percent than last year’s sales of 323,928 units —combined vehicle sales from CAMPI, TMA, and Association of Vehicle Importers and Distributors (AVID).
From January to November 2016, combined CAMPI and TMA sales recorded a total of 325,468 units.
AVID, from January to September this year, sold a total of 68,746 units.
Combined 11-month sales of CAMPI and TMA and nine-month sales of AVID reached a total of 394,214.
Gutierrez has yet to identify other challenges for the industry next year.
But in the previous interviews, other car companies said the proposed excise tax on automotive vehicles will dampen industry growth.
The Department of Finance (DOF), as included in its tax reform package, eyes to increase excise tax of automobiles priced at PHP600,000 and above to 5.0 percent from the current rate of 2.0 percent.
It will also impose tax rate of 20 percent for cars selling above P600,000 to P1.1 million, 40 percent for those selling over P1.1 million to P2.1 million, and 60 percent for cars with prices over P2.1 million.