The bureau of Internal Revenue’s intensified crackdown on tax evaders has left some luxury car buyers wary of making big-ticket purchases now, as they may be subject to scrutiny even if they are not guilty of any crime.
On the sidelines of the launch of the new Jaguar XJ Thurday (July 29), Jaguar Philippines Inc. (JPI) chair and president Wellington Soong said potential buyers were just generally cautious and more mindful of the timing of their purchases.
“This BIR campaign has dampened interest (in luxury vehicles). There’s a general mood of cautiousness,” he said in an interview. “The interest does not really wane. They just have to manage the timing of their purchase.”
In cases of hesitation, Soong said, he respected the buyers’ decision, but stood as closely by as possible to “nurture their interest.”
The BIR more than a week ago filed a tax evasion case against pawnshop owner William Villarica, who allegedly declared zero income the year he acquired a P26-million Lamborghini sports car.
As a result, some luxury car enthusiasts have taken a step back to wait for the dust to settle. But JPI is still bullish of the prospects of the new XJ model, successor of the classic XJ launched in the 1960s, Soong said.
“The real interest has been very encouraging. The reaction of the market has surpassed our expectations over such a short period of time,” he related. “It’s the freshness of the design and the technology. Many have seen it in pictures over the Web, and now, they have the chance to see the actual car.”
When news of the new model hitting Philippine shores came out, he said there were mixed reactions from prospective customers: some felt they should buy the old XJ now because it would soon become a collectors’ item, while others opted to wait for the new model.
Whatever decision these prospectors end up making, and despite the effect of the BIR crackdown, JPI is optimistic that it will fare well in terms of sales this year, he said.
Without going into specifics, Soong said that an upswing in sales was expected toward the end of the year.
JPI will offer the long-wheel-base, 238-kW naturally aspirated V8 version of the new XJ. The model, however, is also available in 375-kW and 346-kW 5.0-liter V8 and 202-kW 3.0-liter AJ-V6D Gen III diesel versions. The vehicle will be sold for around P9 million.
Jaguar overseas operations director Mick Razza said the new XJ presented a great opportunity for the brand to expand in Asia Pacific, from which only around 2 per cent of its sales came.
“The car is in high demand worldwide. It is manufactured in the United Kingdom and is light, agile and strong. It also has state-of-the-art technology that gives it good performance and fuel economy,” Razza said.
