Vehicle importers suffer slump in Q1 sales
A group of vehicle importers yesterday reported a sharp decline in their volume sales in the first quarter, seeing no relief from the impact of the lockdown in the near horizon.
The Association of Vehicle Importers and Distributors Inc. (Avid) sold only 14,404 units from January to March this year, down 34.4 percent from the same period a year ago.
Most, if not all, dealerships and their accompanying repair and maintenance facilities in Luzon have been closed since March 16, Avid said in a statement on Tuesday.
“The local industry is reeling from this invisible enemy as vehicle manufacturing, importation, distribution and maintenance have stopped completely,” said Avid president Ma. Fe Perez-Agudo.
“Demand has likewise declined as consumers spend on more urgent needs. With this disruption, we estimate that car sales may drop by around 40 percent for the year,” she said.
“The industry is no stranger to adversity but this pandemic will be our toughest challenge yet. We estimate that it would take at least 12 months for the local industry to recover once the ECQ (enhanced community quarantine) is completely lifted,” she added.
The passenger cars segment declined by 43 percent in the first quarter with 4,506 units sold versus the 7,848 units in the same period last year.
In the light commercial vehicles segment, year-to-date sales dipped by 29 percent with 9,806 units sold. Commercial vehicles sales slumped by 62 percent to just 92 units during the period.
Avid noted, however, that despite the bleak short-term outlook, many members have joined the nation’s battle to fight COVID-19.
It said several Avid companies were providing free mobility, which includes the transport of front-liners, medical supplies and essential goods across the country. —Roy Stephen C. Canivel INQ
