Imported vehicle sales drop 34% in Q1 2020

BUSINESS
April 30, 2020

SHARE

THE Association of Vehicle Importers and Distributors (AVID) reported a 34-percent decline in sales for January to March this year, the group reported Tuesday.
     AVID said vehicle sales in the first quarter of 2020 reached 14,404 units, lower than the 21,949 units sold in the same period of 2019.
    The drop in sales of imported vehicles in the country is mainly due to the closure of dealership networks since the quarantine measure was implemented by the government to contain the coronavirus disease 2019 (Covid-19) outbreak.
    “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. There will be a ‘new normal’ and we must be quick to adapt since Filipino consumers will be even more prudent and looking for more value in their purchases,” AVID President Ma. Fe Perez-Agudo said.
    Sales of passenger cars in the first quarter of 2020 plunged by 43 percent to 4,506 units from 7,848 units sold in the first three months of last year.
    Light commercial vehicles’ sales also dipped by 29 percent to 9,806 units in January to March 2020 from 13,862 unit sales during the same period last year.
    “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,” Perez-Agudo added. (PNA)

 

RELATED ARTICLES

LEAVE A REPLY



Subscribe Now!

Receive email updates from Business Week.