BMW Philippines sees its sales at a standstill this 2018 following the additional levy imposed on automobiles by the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The luxury car brand distributor is positive on its outlook for the current year, but is expecting neither a rise or decline in numbers due to factors that may affect their automobile sales, BMW Philippines president Maricar Parco told reporters Friday at the launch of its new car model.
The implementation of the tax reform mandate early 2018 is assumed to be partly responsible for the surge in sales last year, hitting a record high growth of more than 30 percent as buyers took advantage of the period prior to the imposition of the additional taxes.
Other than that, Parco said that the growth was also influenced by BMW being the mobility partner for the ASEAN Leaders Meeting hosted by the country in 2017.
The weakening of the Philippine peso versus dollar was also cited as a reason for the foreseen “flat growth”.
The BMW Philippines executive also said that the launching of the brand’s X series models will propel their sales this 2018.
SMC Asia Car Distributors Corporation, the company behind the luxury brand’s local distributor, is 65 percent owned by Ramon Ang’s San Miguel corporation, while 35 percent belongs to the Alvarez Group of Companies owned by Palawan Governor Jose Ch. Alvarez.
Story first appeared here.
BMW logo from BMW Philippines’ Facebook page.