Imported vehicle sales plunge 16% in January

MANILA, Philippines — Sales of imported vehicles dropped 16 percent year-on-year in January as Taal Volcano’s eruption and the COVID-19 outbreak affected operations of importers and dampened consumer demand.

The Association of Vehicle Importers and Distributors Inc. (AVID) said in a statement yesterday it sold 5,433 units in January, lower than the 6,482 units in the same month last year.

Passenger car sales declined 31 percent to 1,553 units from 2,258 units a year ago.

AVID’s light commercial vehicle sales also slid 7.3 percent to 3,855 units in January from the previous year’s 4,157 units.

Commercial vehicles sold plunged 63 percent to 25 units from 67 units last year.

AVID, which groups 25 vehicle brands, attributed the drop in overall sales to challenges posed by Taal Volcano’s eruption and ashfall, followed by the COVID-19 outbreak.

“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.

On the bright side, she said the Philippine economy remains strong, backed by robust public spending, private consumption, and lower interest rates.

“I am confident that AVID members will adapt to and hurdle these challenges and bounce back even stronger in the coming months,” she said.

Apart from the challenges posed by Taal Volcano’s eruption and COVID-19, there are other developments seen to affect the performance of the automotive industry such as the government’s ongoing investigation on a petition filed by the Philippine Metalworkers’ Alliance for a safeguard measure or duty on vehicle imports, as well as the Philippines’ intention to retaliate against Thailand by slapping tariff on Thai manufactured vehicles as compensation in relation to a cigarette tax case.

Despite challenges faced by the industry, Agudo said AVID is committed to continue to provide better vehicles, as well as to improve their services for an enhanced customer experience.

Last year, AVID’s total sales reached 87,984 units, down slightly from the 88,430 units sold in 2018.