The Association of Vehicle Importers and Distributors Inc. said sales improved in July from the previous month on the back of strong demand for passenger cars.
Data from AVID showed that its members sold 5,100 vehicles in July, up by 38 percent from 3,697 units in June. On a year-on-year basis, sales were still down from 6,987 units delivered in July 2019.
“Our focus now is to win back consumer confidence and give them the best value during these pandemic times,” said AVID president Ma. Fe Perez-Agudo.
AVID is one of the three major car industry groups, the other two being the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association Inc.
The group said that demand for passenger cars and subcompact SUVs was beginning to pick-up as consumers looked for safe and affordable personal mobility with restrictions on public transport and the pandemic.
Passenger car sales went up by 47 percent to 1,764 units in July from 1,199 units in June while demand for light commercial vehicles sales increased by 35 percent to 3,317 units from 2,462 units. Commercial vehicle sales contracted 47 percent to 19 from 36 units.
AVID said there was an increase in sales of small utility trucks and vans, a proof of gradual steps to putt back the economy together.
The group said that in the first seven months of 2020, sales slumped by 50.9 percent to 24,067 units from 50,151 units delivered in the same period in 2019.
Passenger cars sales dropped 55 percent to 7,580 from 17,601 units, while light commercial vehicles also registered 48-percent decline to 16,561 from 51,873 units. Sales of commercial vehicles decreased 73 percent to 156 from 577 units.
Agudo said the entire industry was undergoing a rapid digital transformation to meet the evolving needs of consumers, employing innovative and disruptive selling tactics to win back customers, and the agility to adapt to a more complex and unpredictable business environment
“Given that we have already bottomed out in the first semester, we believe the second half of the year will be better assuming there are no further lock downs past August 18,” she said.
“We understand the government’s decision to shift back to MECQ since we need to prioritize lives over livelihood. We anticipated such scenarios and are therefore prepared to adapt and respond, keeping in mind the needs and safety of our customers,” Agudo said.