MANILA, Philippines—Sales of the Association of Vehicle Importers and Distributors (AVID) shrank 1 percent in the first eight months to 16,020 units from 16,195 units in the same period last year.
According to the organization, eight-month sales were pulled down by the 19-percent decline in August sales, still due to supply woes as a result of the March 11 Japan earthquake and tsunami.
In August alone, AVID members sold a total of 1,825 units, down 19 percent from the 2,249 units sold in the same month the year before.
“AVID’s sales performance for the eight-month period remained resilient despite continuing global demand-supply gap, which bear significantly on timeliness of product delivery. Fluctuating unit arrivals have increased the number of unmet orders, which negatively impacted total sales growth for the period,” the group said in a statement issued Tuesday.
Seasonality of demand was also cited as one cause for the August sales decline as sales usually dropped at around this time before accelerating toward the traditionally sales-heavy month of December.
“AVID maintains an optimistic sales outlook for the rest of the year with expectations of better supply situation and improved consumer outlook from increased consumer liquidity and stronger [overseas Filipino worker] remittances with the coming of the Yuletide season,” the group said.
The Chamber of Automotive Manufacturers of the Philippines Inc., made up mostly of vehicle assemblers but also includes some AVID members as associate members, likewise posted a sales decline of 4 percent in the January-August period.
Both vehicle organizations suffered supply woes following the March 11 Japan disaster. Some companies supplying critical auto parts and components were left in various states of damage after the earthquake, causing a severe supply gap.
Crucial airports and seaports were likewise adversely affected, resulting in transshipment bottlenecks.