Car importers post 13% lower sales

MANILA, Philippines — The Association of Vehicle Importers and Distributors Inc. (AVID) said its sales declined by 13 percent in the January to September period as rising inflation continued to dampen consumer demand for big-ticket items including vehicles.

In a statement yesterday, AVID said it sold 65,917 units as of end-September, lower than the 75,949 units sold in the same period last year.

AVID said the country’s high inflation rate and and the consumers’ priority to purchase food and other basic needs are among the reasons for weak buying appetite for cars.

The country’s inflation rate hit 6.7 percent in September, the highest in nine years.

“Consumer vehicle demand is tempered by the rising commodity prices and interest hikes,” AVID president Ma. Fe Perez-Agudo said.

Weaker demand for cars has been seen since earlier this year, following the implementation of the Tax Reform for Acceleration and Inclusion Law which imposed higher excise taxes on vehicles.

AVID’s passenger car (PC) sales declined 20 percent to 23,531 units in the January to September period from 29,266 units in the previous year.

Sales of the light commercial vehicles (LCVs) also dipped 10 percent to 41,808 units as of end-September from 46,683 units a year ago.

For the third quarter alone, AVID’s total vehicle sales decreased 18 percent to 22,774 units this year from 27,605 units last year.

PC sales in the third quarter reached 7,350 units this year, down 30 percent from the previous year’s 10,497 units.

LCV sales in the third quarter also slid 11 percent to 15,279 units this year from the 17,108 units a year ago.

While sales are still down year-on-year as of end-September, AVID is optimistic supply and demand factors would stabilize.

“Amidst the headwinds, AVID retained its rosy outlook that its wave of new product launches and customer-focused service offerings will augur well for the automotive industry,” Agudo said.