AVID: Sales of imported vehicles down 34% in Q1

MANILA: We’re just in the first month of Q2 and the auto industry is already seeing the devastating effects of COVID-19 on the first three months of 2020.

The Association of Vehicle Importers and Distributors (AVID) has turned in a report stating that there has been a 34% drop in sales of imported vehicles between the months of January and March.

For some perspective, sales of AVID in Q1 of 2019 was 21,949. This year Q1, 14,404. That’s a staggering drop of 7,545 units.

The huge drop in sales is attributed to the closure of vehicle dealerships as part of the enhanced community quarantine (ECQ) and the market appetite for the rest of the year is expected to be weak because of the unstable economic condition.

“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,” said AVID President Ma. Fe Perez-Agudo.

Passenger cars sales also dropped by 43%. Sales in Q1 of this year only 4,506 units compared to 7,848 during the same period last year.

“Demand has likewise declined as consumers spend on more urgent needs. With this disruption, we estimate that car sales may drop by around 40 percent for the year,” added Perez-Agudo.

Photo from Wikimedia Commons

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