IMPORTED vehicle sales in January dropped 16% because of the Taal volcano ashfall and the new coronavirus (COVID-19) outbreak, the Association of Vehicle Importers and Distributors Inc. (AVID) said in a report on Thursday.
AVID said sales of the 25 car companies it represents fell to 5,433 units in January, from 6,482 in the same month last year.
“2020 will be a very challenging year for the industry given the slowdown in automotive demand, supply chain disruptions, and dampened consumer confidence caused by these twin events,” AVID President Ma. Fe Perez-Agudo said.
“Fortunately, the Philippine economy remains strong backed by robust public spending, private consumption, and lower interest rates.”
The Taal ash fall caused temporary closures in automotive dealerships and facilities in the National Capital Region and Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) for several days in January.
Hyundai Asia Resources Inc. (HARI) on Tuesday said that COVID-19 may have also caused conservative spending for big-ticket items such as vehicles as consumers stay at home.
AVID said passenger car sales fell by 31% to 1,553 units in January from 2,258 in the same month last year, led by HARI’s sales of 967 units. Hyundai’s sales in this segment fell 33% from 1,443 a year earlier.
Suzuki Philippines sales in this segment came in second even as the units sold fell 41% to 353 units from 602, while Ford Group Philippines Inc. sales grew 185% to 117 from 41.
Light commercial vehicle sales declined 7.3% to 3,855 units from 4,157. Ford led with 1,357 units sold, falling 22% from 1,749 a year earlier.
Suzuki sales in this segment grew 62% to 1,122 units from 694, while Hyundai sales fell 20% to 1,053 from 1,315.
Commercial vehicle sales, accounted for by Hyundai vehicles, fell 63% to 25 units from 67 a year earlier.
The January sales results spelt continued decline from the imported vehicle industry. Data from last year showed January 2019 sales had fallen around 25% from the same month in 2018.
Full-year 2019 sales dipped by 0.5% to 87,984 vehicles, from an updated 88,430 units the year before.
The drop in 2018 was deeper at 16.8% as the industry felt the impact of high inflation rates and new tax hikes.
Ms. Perez-Agudo said she was confident AVID members would be able to adapt and make up for losses in the coming months.
“We are no strangers to adversity and disruptions. As we have done in the past 10 years of AVID’s existence, our members remain resolute to provide better vehicles, better services, and better customer experiences to Filipinos everywhere,” she said. — Jenina P. Ibañez
