PH Q1 2020 auto sales from AVID down by 34%, and we’re not surprised

Updated Apr 28, 2020 | Same topic: COVID-19 Updates

AVID said that it would take at least 12 months for the local industry to recover from COVID-19.

With the negative effects of the Taal Volcano eruption, COVID-19 outbreak, and temporary suspension of operations of car dealerships in the country, it is not a surprise that car sales will dramatically plunge.

In fact, the Association of Vehicles Importers and Distributors, Inc. (AVID) recorded sales of only 14,404 units in Q1 2020, representing a 34.4 percent drop compared to the same period last year.

“The local industry is reeling from this invisible enemy as vehicle manufacturing, importation, distribution, and maintenance have stopped completely. Demand has likewise declined as consumers spend on more urgent needs. With this disruption, we estimate that car sales may drop by around 40% for the year,” AVID President Fe Perez-Agudo said.

A gray Hyundai Accent

4,506 Hyundai Passenger Cars sold versus the 7,848 PC in the same period last year

>>> Related: Online car buying will rise after COVID-19, but won't be permanent

“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 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," Ms. Agudo added.

In the Passenger Cars (PC) segment, AVID recorded a 43 percent decline in Q1 2020, while in the Light Commercial Vehicles, year-to-date sales dipped by over 29 percent. Lastly, in the Commercial Vehicles (CV), sales declined by 62 percent to just 92 units over the period.

A Ford Transit driving down the road

Ford Group Philippines Inc. leads the Light Commercial Vehicles segment with 579 units sold from February 2020 to March 2020

>>> Related: Will car sales go up as a result of COVID-19 pandemic?

The Month-on-Month Sales record 48 percent decline in the Passenger Cars segment, 62 percent sales dip in the Light Commercial Vehicles, and 90 percent decline in the Commercial Vehicles segment which results in a total of 58 percent decline in car sales from 6,262 units in February to 2,649 units in March.

Despite the inconvenience the auto industry in the country is facing, many members of AVID have joined the nation’s battle to fight the COVID-19.

Ford, Isuzu, and Suzuki have provided transport services to frontliners while Honda and Toyota lent some of their vehicle units to health workers. Some have donated personal protective equipment (PPE), masks, gloves, etc. to COVID-19 quarantine facilities.

Here's a list of AVID members included in the computation of data:

  • Auto Nation Group (Chrysler, Jeep, Dodge, Mercedes-Benz)
  • British Bespoke Automobiles, Inc. (Rolls-Royce)
  • British United Automobiles, Inc. (Lotus, MINI)
  • DBPHILS Motorsports, Inc. (Aston Martin)
  • Ford Group Philippines, Inc. (Ford)
  • Hyundai Asia Resources, Inc. (Hyundai)
  • Motor Image Pilipinas, Inc. (Subaru)
  • Legado Motors, Inc. (GAC)
  • PGA Cars, Inc. (Audi, Bentley, Lamborghini, Porsche)
  • Scandinavian Motors Corporation (Volvo)
  • Suzuki Philippines, Inc. (Suzuki)
  • Triesenburg Auto Corporation (Kinglong)
  • The Covenant Car Company, Inc. (Chevrolet & MG)
  • JAC Automobile International Philippines (JAC)

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Rex Sanchez

Rex Sanchez

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Rex started off his career in the aviation industry before entering Philkotse as a staff writer. Two things excite him the most: first is staying up to speed with the latest news in the industry that uses engines as their heart and soul. The second is imparting them in a well-detailed manner. His passion for anything with wheels started when he was young – from Tamiyas to family-friendly sedans, and anything in between.

Someday, Rex only wishes to drive on random highways with friends in a third-gen Mitsubishi Delica with aftermarket sunroofs, if he couldn’t get the Starwagon Super Exceed edition.

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