Sales of imported vehicles dropped 13 percent in the first nine months from a year ago, amid rising oil prices, inflation and interest rates, the Association of Vehicle Importers and Distributors said Tuesday.
Avid said members sold 65,917 vehicles in January to September, down from 75,949 units delivered in the same period in 2017. Avid accounts for a quarter of total vehicles sales in the Philippines, with the rest represented by the Chamber of Automotive Manufacturers of the Philippines.
“Avid sales hit 65,917 units sold in the first nine months of the year as consumer vehicle demand is tempered by the rising commodity prices and interest hikes,” said Avid president Ma. Fe Perez-Agudo.
The group said sales sank 18 percent in the third quarter to 22,774 units from 27,605 units a year ago.
Demand for passenger cars slowed down 20 percent in the nine-month period to 23,531 units from 29,266 units a year earlier. Third-quarter passenger car sales plummeted 30 percent to 7,350 units from 10,497 units.
Sales of light commercial vehicle sales, which accounted for 63 percent of total Avid sales, also dropped 10 percent in the first nine months to 41,808 units from 46,683 units.
The segment declined 11 percent in the third quarter to 15,279 units from 17,108 units in the same period last year.
Avid said high inflation and credit downgrades, coupled with rising cost of food and other basic needs contributed to households’ less favorable outlook on their buying conditions across all big ticket items.
“Nevertheless, Avid will continue to offer innovative products and services with the customers in mind amidst its expectation that both supply and demand factors will stabilize,” Agudo said.