Total vehicle sales exceeded the half-a million mark for the first time in 2017, after a group of importers said newly purchased units increased 14 percent from 2016 on strong demand.
The Association of Vehicle Importers and Distributors, a group led by Hyundai Asia Resources Inc., said sales rose 14 percent to 106,268 units in 2017 from 93,192 units delivered in 2016.
Industry groups Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association earlier reported that combined sales jumped 18.4 percent in 2017 to a record 425,673 units from 359,572 units in 2016, ahead of the implementation of new excise tax rates on vehicles this year.
This means that total sales of Avid, Campi and TMA reached 531,941 units last year, up by 17.5 percent from 452,764 units in 2016. It also exceeded the industry sales target for 2017 of 450,000 units.
Avid attributed the strong sales performance in 2017 to the pressure from the Tax Reform for Acceleration and Inclusion law that took effect on Jan. 1, 2018. Automotive buyers took advantage of the remaining days in December to buy new vehicles ahead of the imminent tax hike on automobiles.
“Avid sales capped a banner year in 2017 at 106,286 units sold, 14 percent higher than the 93,192 units sold in 2016. For the year ahead, we remain optimistic as we expect short-run market adjustments resulting from the Train,” said Avid president Ma. Fe Perez-Agudo.
“The new automotive landscape opens waves of opportunities for the luxury, e-vehicles and hybrid vehicles market. Thus, Avid will continue supporting efforts to sustain inclusive growth and build a positive environment for business,” Perez-Agudo said.
Avid said fourth-quarter sales of members increased 24 percent to 30,336 units from 24,438 units sold a year earlier.
Data showed that total sales of the passenger car segment by Avid members rose 11 percent to 39,722 units from 35,782 units sold in 2016. In the fourth quarter, the segment posted a 12-percent gain to 10,455 units from 9,344 units sold in the same quarter a year earlier.
Hyundai remained as the top-volume nameplate in the segment as it ended 2017 with 25,529 units sold.
The light commercial vehicle segment posted a 16-percent increase, bringing its 2017 total to 66,564 units from 57,410 units sold a year earlier. The segment’s fourth-quarter sales surged 32 percent to 19,881 units from 15,094 units.
Avid said that with the new tax law, it remained positive that the government would achieve the 7 percent to 8 percent economic growth target, further fueling the country’s ‘Build, Build, Build’ program.
It said it remained upbeat as it expected the automotive market to make the necessary adjustments with the new landscape.