Imported vehicle sales up 12% in April

MANILA, Philippines - Sales of imported vehicles rose 12 percent in April to 2,333 units sold against the 2,085 units sold in the same month last year, boosted by strong sales of passenger cars (PC).

The latest sales report of the Association of Vehicle Importers and Distributors (AVID) showed that in April, PC purchases grew 55 percent with 1, 324 units sold against 852 units sold in the same month last year.

In April, Hyundai Asia Resources Inc. (HARI) led the pack of car importers with 1,891 units sold, up from 1,707 in April 2011. It was followed by The Covenant Car Co. Inc. (TCCCI), importer of Chevrolet vehicles, with 205 units sold in April, up from 144 in the same month last year. Subaru cars importer Motor Image Pilipinas, Inc. followed suit with 132 units sold, up from 103 units in April 2011.

April sales of British United Automobiles, Inc., importer of MINI cars, rose to 14 units sold in April from eight units sold in the same period last year.

Sales of CATS Motors, importer of Mercedes-Benz, fell to 49 units sold in April 2012 from 68 in April 2011. Audi and Porsche importer PGA Cars Inc. also sold fewer units in April at 26 units sold from 37 last year.

Sales of Scandinavian Motor, importer of Volvo, fell to 16 units from 18 units sold last year.

Year-to-date sales covering the months of January to April saw car sales increasing 31 percent to 10,633 units sold from 8, 119 units sold in the same period last year.

This was likewise attributed to strong sales of PC models that rose 85 percent to 6,527 units sold in the first four months of the year from 3,526 units sold in the same period last year.

HARI led the pack of car importers with 8, 658 units sold in the period, up from 6,419 units sold in the same period last year.

In an earlier interview, HARI president and CEO Ma. Fe Perez-Agudo said the company is taking advantage of the implementation of the ASEAN-Korea Free Trade Agreement (AKFTA) by aggressively expanding its presence in the country in the next five years. 

Upon implementation of the FTA, tariffs imposed on cars imported from Korea would be reduced to 20 percent from 30 percent and would be further reduced to five percent, even zero by 2016.

In line with this development, HARI, which distributes completely-built up (CBUs) Hyundai units from Korea, is opening four more dealership hubs this year. By the end of the year, HARI will have 45 active dealerships.

TCCI followed with 1, 071 units sold between Jan to April, up from 691 units sold in the same period last year. Sales of Motor Image Pilipinas also grew to 429 units this year from 413 last year. British United Automobiles Inc. was also able to grow its sales to 62 this year from 32 last year.

Sales of CATS Motors Inc., however, fell to 227 in the first four months of 2012 from 335 in the same period last year. PGA Cars, Inc. also sold fewer units during the period at 114 from 146 last year. The same is true for Scandinavian Motors at 72 units this year from 83 last year.

With a stronger performance in the first four months of the year, Agudo, who is also president of AVID, said sales outlook continues to be positive.

“We step into the second quarter with the confidence that the optimistic business and financial landscape will bring about continued and exceptional sales performance for all AVID members,” she said.

Accelerated government spending on infrastructure projects is expected to help drive sales in the second quarter.