Traffic building up ahead: Car sales surge 151% in Q1

Vehicle importers and distributors posted a 151 percent surge in sales to 21,160 units in the first quarter of the year, driven largely by the triple-digit growth performance of the light commercial vehicle segment.

Data from the Association of Vehicle Importers and Distributors (Avid) showed sales of light commercial vehicles  rose by 220 percent to 13,551 units in the first three months of 2016, while that of passenger cars grew by 81 percent to 7,609 units.

“As the Philippines continued to be Asia’s bright spot, Avid registered a triple-digit growth of 151 percent in the first quarter of 2016. This growth would further motivate Avid to give customers value-laden and pioneering products and services, which drive at the hearts of the Filipino people,” said Avid president Ma. Fe Perez-Agudo.

Given the attractive financing packages and upbeat Philippine economic prospects, Avid further expects the local automotive industry to sustain this upward trend in the coming months.

“The Philippines was expected to maintain its healthy economic track record on the back of sound macroeconomic fundamentals amidst the global economy slowdown. This positive outlook was supported by the upwardly adjusted forecast of debt watcher Standard & Poor’s (S&P), which raised its economic growth forecast for the Philippines for 2016 to 6 percent from 5.7 percent,” said Avid, which lists as members firms distributing posh cars.

It said private consumption would continue to boost economic growth, due largely to the growing middle class.

It said “this would be further bolstered by election-related spending and infrastructure projects. However, exports was expected to be tilted on the downside as a result of the weak global demand.”

As of the end of the first quarter, Ford Group Philippines Inc. was Avid’s top seller, with the company’s sales hitting 7,876 units, followed Hyundai Asia Resources Inc (Hari), with 7,469 units, data from the automotive group showed.

Suzuki Philippines Inc., meanwhile, ranked third in the group, chalking up sales of 3,048 units. Chevrolet distributor, The Covenant Car Co. Inc. (TCCCI), followed with 1,527 units while Motor Image Pilipinas Inc. came in at fifth with 789 units sold.

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