Toyota sees local auto market shrinking by 5%

TOYOTA Motor is projecting this year’s industry sales to decline by 5 percent from last year’s level as buyers postpone purchases following fears that economic recovery still far off.

“We have sold 96 percent up to May of what we sold last year,” said Toyota Motor Philippines president Hiroshi Ito.

Local automotive sales fell 3.7 percent to 49,002 units in the first five months compared with the 50,883 sold in the same period last year.

For May alone, the industry sold 10,450 vehicles—a 4.1 percent decline from the 10,901 sold in the same month last year.

The stronger yen was also no help.

Despite the slower sales, Toyota had to raise prices by an average of P10,000 per vehicle, said Daniel Isla, Toyota Motor’s first vice president for marketing.

Still, the local industry is luckier than its US counterpart, which saw its automotive market shrinking by as much as 40 percent.

Even Toyota’s luxury brand, Lexus, had to scale back its sales projection, with the economic slowdown apparently hitting even the so-called A and B markets.

“When we first planned to bring in Lexus in the Philippines before the crisis struck, we were targeting sales of 300 units in one year. When we launched it last January, we set a target of 200 units. Now, we’re scaling down our full-year sales target to 170 units,” said Isla, who also heads Lexus’ sales.

Lexus had so far sold about 70 cars and SUVs combined, he said.

Last week, Toyota also launched the third-generation Prius hybrid car, with a sticker price of P2.2 million for the 1.8-liter Japanese-made sedan, as against the $22,000 (less than P1.1 million) retail price in the United States.

Out of the local price, taxes accounted for P600,000, Isla said.

Prius could not get preferential duties under the Japan-Philippines Economic Partnership Agreement since only vehicles with engine displacements of three liters and higher like the Camry were entitled to the privilege, Isla said. –Elaine Ramos Alanguilan, Manila Standard Today