After two straight months of strong recovery from the pandemic, 200% in June from May and another 40% in July, the Association of Vehicle Importers and Distributors Inc. (AVID) announced they have experienced a 7% drop in August equivalent to 4,753 units sold compared to 5,100 sold in July.
AVID pointed out that the slight decrease was due to the stricter lockdowns from August 4 to August 18 in Metro Manila and outlying provinces. However, the 21-member group representing 26 global vehicle brands said despite the minor setback, it expects to sustain its recovery in the “BER” months.
“There are encouraging indicators of a sustained recovery for auto with the gradual reopening of businesses. Still, we remain vigilant since a key aspect of the industry’s revival is the restoration of consumer confidence through strict health and safety guidelines and rapid digital transformation. These ensure the well-being of our stakeholders, continuity of operations, and preservation of livelihood,” said Ma. Fe Perez-Agudo, president, AVID.
Demand for Passenger Cars (PC) continued to recover as customers are looking for affordable and safe means of personal mobility. PC sales increased by 6% to 1,865 sold in August compared to July. Hyundai remained a top contributor in this segment followed by Suzuki and Ford.
Another bright spot is the Commercial Vehicle (CV) segment where sales grew by 95% month-on-month growth. CV sales are expected to rebound sooner rather than later with the continuation of the BUILD BUILD BUILD program and Public Utility Vehicle Modernization Program (PUVMP).
AVID recorded a 14% drop in August for the Light Commercial Vehicle segment equivalent to 2,851 units sold compared to the previous month. Ford, Hyundai, and Suzuki were the top three sellers in this segment.
“AVID is one with the auto industry in calling for government support so we can recover from the impact of this pandemic. We welcome government initiatives that further open opportunities for investment, create jobs for our workers, provide reliable and affordable mobility for Filipinos,” Agudo said.
“However, we are particularly concerned about the proposal to impose ‘safeguard’ taxes on imported vehicles. Prior to the lockdowns, we have conveyed our position that penalizing imports will not trigger investments nor address pressing issues faced by the local manufacturing sector. Rather, it is a disruptive measure which will further inhibit the growth of the automotive industry and reduce our competitiveness in the region,” Agudo added.