The Impacts of Additional Automotive Tax to Selected Car Manufacturers in Metro Manila
Abstract
The implementation of the Tax Reform for Acceleration and Inclusion Law (TRAIN) caused several adjustments across various industries including the automobile business. This study was conducted to determine the total unit sales of automobiles of selected car manufacturers in Metro Manila a year before and after implementing the TRAIN law; identify the effect of change in retail price on the total sales; and determine the impact of competition to the total sales The study employed a descriptive research design. A total of twenty-five purposively chosen key respondents were included in the study. Five high-ranking management members from each brand with local manufacturing operations in the Philippines namely, Toyota, Mitsubishi, Foton, Honda, and Nissan were the respondents. The data was collected through the use of online survey questionnaires and were analyzed using descriptive statistics (mean, standard deviation, etc.), frequencies, and percentage. There was a significant effect on the automotive industry in the Philippines brought by the implementation of the TRAIN law. It was found out that the total unit sales of the five selected car manufacturers have decreased during the year of implementation of the additional automotive tax compared to their sales prior to the year of its actual implementation. These car manufacturers have also adjusted their retail price necessitated by the TRAIN law, which also affected their total sales. Competition between the leading car manufacturers in the country was also taken into account. It was found out that there was a high level of competition among car companies.
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