Passenger cars seen to expand market share

Toyota Motor Philippines Inc. (TMPI) senior vice president Serafin Pantaleon said yesterday that they expect the market share of passenger cars to increase to 35 percent from its current share of 25 percent following the passage of the new value-based excise tax.

Pantaleon said passenger car prices are expected to drop with the passage of the new tax scheme.

"At the same time, more vehicle models are expected to be introduced into the market once the new value-based excise tax is in place and engine displacements is no longer a consideration," Pantaleon said.

"In the past, most local automotive companies limit the number of vehicle models because of the engine-size restriction," he added.

The automotive industry is projecting total car sales for this year to reach 90,000 units compared with last year’s 85,587 units with the strongest sales growth seen to come from passenger car sales.

On the other hand, the market share of the Asian Utility Vehicles is seen to remain the same at 41 percent even with the additional excise tax.

Industry observers said the AUV's market share is expected to remain the same because it is considered the most versatile vehicle.