The Philippines set a new record for vehicle sales after registering impressive rates during the first two months of 2014.
Considered the best ASEAN record, the country posted 15,642 unit sales in January 2014, up 27.1% year-over-year and 16,828 unit sales in February 2014, up 16.5% year-over-year. The new Asian tiger’s vehicle sales for both passenger and commercial units are performing well, which can be considered indicators of a robust market and a growing economy.
Rommel Gutierrez, President of Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), stated, “With fewer calendar days for February, the industry is surprised to see sales reaching a level normally achieved during the peak month of December. If this trend will continue, the industry may even revise its forecast earlier than expected.”
Data from Campi and Truck Manufacturers Association (TMA) showed that passenger units accounted for the biggest sales growth which was 5,620 units, up 21.7% year-over-year. The top three auto manufacturers with the highest sales are Toyota Motors Philippines Corp., Mistubishi Motors Philippines Inc., and Ford Motor Co. Phils.
The current outlook for total car sales is estimated to be 230,000 units, an increase of 10% year-over-year.
Anti-Smuggling campaign to boost local vehicle sales
The Bureau of Customs (BoC) is one of the players that is expected to greatly contribute to the Philippine economy as it advances its efforts against smuggling.
In a recent report by the Bureau, it has suspended the accreditation of importers and brokers who have records of violating Customs policies and procedures. BoC reported that a total of 70 companies or entities and 45 customs brokers were tagged for non-compliance. The suspension was primarily related to the correct disclosure of detailed product descriptions for imported goods.
One of the most controversial issues facing importers is the importation of used cars. Last month, 38 imported second-hand vehicles imported by Fenix (CEZA) International, Inc. were reported to have been seized at Port Irene in Santa Ana, Cagayan. A total of 800 used cars were imported in three batches via Port Irene from December 2013 to January 2014.
Among the units that were seized include 2003 and 2005 models of Hummer H2, 2003 Honda Fit, 2002 Toyota Alfard, and 2000 Nissan Serena. Last year, a Php45-million McLaren MP4-12C luxury sports car fitted with Formula One Technology was intercepted from entering the country.
According to BoC, the ban on importation of used cars is supported by Executive Order (EO) 156 which was signed by former President Gloria Macapagal-Arroyo. However, importers are also citing EO 877 which states that used vehicles may be imported to the country, but will remain in the secured, fenced-in freeport zones.
John Sevilla, Commissioner of BoC, explained, “EO 418 did not repeal EO 156- the Supreme Court has said so. If there’s anyone defying the courts, it is importers who continue to insist on importing used cars and bringing them outside of the ecozone and into the Philippine customs territory“.
Filipinos voice their thoughts through social media
While the government is pleased with the country’s economic progress, many Filipinos continue to flood social media with their sentiments regarding the possible implications of higher vehicle sales and anti-smuggling campaign.
Since Metro Manila is notorious for heavy traffic, commuters are concerned about further congestion and longer travel periods, brought by more private vehicles and ongoing road projects. Filipinos have been repeatedly encouraged to use public transportation to aid the worsening traffic condition in the metro.
In light of the anti-smuggling campaign, many agree that the government should continue its efforts against smuggling because of its positive impact on the economy. However, the public is divided when it comes to the issue of impartiality. There are speculations about under-the-table transactions or grey options for importers who want to retrieve their goods.
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