According to the latest report of Association of Vehicle Importers and Distribution (AVID), the Philippine automotive industry has been suffering lately from the backlash of high inflation, blow up in interest rates, and fuel prices hike. The industry suffered as early as the first quarter (Q1) of 2018, which also reflected for the whole first half (H1) of this year.
For the first nine months of 2018, AVID continued to experience a decline in its car sales. A 13% year-to-date decline was recorded, as the group was only able to account for 65,917 units sold. This figure is notably lower by 10,032 units as compared to the 75,949 sales last year.
The third quarter (Q3) also showed a major pull back, as AVID only sold 22,774 units from January to September, which is 18% lower versus Q3 of 2017 with 27,605 sales mark.
In the passenger car (PC) segment, people seem to slowly turn away from smaller cars, in favor to bigger cars like SUVs and pickup trucks. A drop in the chart solidifies this observation, as PC segment’s sales dropped by 20% or 23,531 units sold on year-to-date basis, while Q3 sales plummeted by 30% with 7,350 units sold.
Hyundai Asia Resources, Inc. (HARI) emerged on top of the PC segment, as it managed to sell 15,359 units from January to September 2018. It was the only brand that showed five-digit year-to-date sales for 2018. Meanwhile, Q3 sales for HARI declined from 2017’s 6,913 units to this year’s 4,521 sales.
Meanwhile, the local commercial vehicle (LCV) segment still has the biggest share on the whole AVID sales. It holds 63% of the total year-to-date sales this year with 41,808 units sold, while the segment was able to score 15,279 sales in Q3. Leading this segment is Ford Group Philippines, Inc. (FGPI) with a tally of 17,600 sales in the first nine months of 2018, or 5,445 units sold in Q3 alone.
Lastly, the commercial vehicle (CV) segment, represented solely by JAC Automobile Int’l Philippines, Inc. (JAIPI), started its business with year-to-date sales of 578 units, while 145 units in Q3. JAIPI joined AVID in May 2018, making it one of the youngest members of the group, that’s aside from Triesenburg Auto Corp. (TAC).
“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. 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.”