Sales of luxury vehicles slumped more than 50 percent in 2018, sharper than the 16-percent sales drop in the entire Philippine automotive sector, Lexus president Raymond Rodriguez said.
Rodriguez said the lower sales of luxury brands stemmed from the higher excise taxes under the Tax Reform for Acceleration and Inclusion law which was implemented in January 2018.
“It may take us two to three years before we can fully adjust to the new tax scheme. We are happy, though that despite slower sales, hybrid models are gaining more popularity because of new incentives,” he said.
Rodriguez said aside from Lexus, other luxury brands were in similar predicament given the increase in automotive taxes. Rodriguez said forward buying in end-2017 positively also impacted on sales last year.
Lexus sold 615 units in 2018, down 50.8 percent from 1,251 units sold in 2017. Of the total sales, hybrid cars accounted for about 15 percent or 99 units.
Rodriguez said it would be difficult for the company to replicate the 2017 sales feat when forward buying really pushed sales to an all-time high.
“But we’re optimistic we will sell as much as 700 units this 2019,” he said.
Rodriguez said that despite slower sales in 2018, Lexus improved its market share to about 35 percent from 31 percent in 2017 across all luxury car brands.
“We’re second place and it’s not bad. Volume does not always matter. We hope to be first place in customer service,” Rodriguez said.
He said that for 2019, the brand will rely on the UX and ES models to prop up sales as well as NX and RX models which are Lexus’ bestsellers.
Lexus offers 10 models in the Philippines.