Car sales decline as poverty rises in cities

The surge in motorcycle purchases this year, coupled with the decline in car sales, paints a grim picture for the Philippine economy next year as government policies fail to establish a conducive spending environment, according to an international think tank.

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In a Nov. 5 report obtained by Manila Bulletin, the Economist Intelligence Unit (EIU) noted that the country’s gross domestic product (GDP) could grow even slower next year compared to its initial projection of 4.6 percent.

Without taking into consideration additional data for household consumption, the EIU said signs of an even weaker economy are already apparent in the current trend in the purchases of motorcycles and cars.

Data from the Motorcycle Development Program Participants Association Inc. (MDPPA) showed that motorcycle sales from January to September grew 13 percent to 1.40 million units compared to 1.24 million units in the same period last year.

On the other hand, 343,410 vehicles were sold in the first nine months, down from 344,407 units a year ago. This is according to a joint report by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

This contrast, according to EIU, reflects “important weaknesses in the Philippine economy.”