The Association of Vehicle Importers and Distributors (AVID) maintained a firm foothold in the automotive industry, closing 2015 with high sales take-up of 58,712 units in 2015 versus the 35,593 units sold in 2014.
The passenger car (PC) segment, with its wide range of value-for-money product offerings, expanded by 21 percent, brought the sales tally to a total of 22,386 units in full-year 2015. Fourth quarter year-on-year figures also grew by 53 percent, with Hyundai Automotive Resources Inc. leading the pack with 10-percent growth.
Sales of light commercial vehicles spiked by 112 percent or a total of 36,326 in 2015 against the 17,125 units logged in the previous year. The whopping 216-percent growth resulted in a total of 13,057 units in the fourth quarter of 2015 from 4,135 units in 2014. This is attributable to strong demand fueled by the drop in oil prices. Also major contributor to this expansion is new AVID member, Ford Philippines.
“AVID is delighted to reach another milestone as it significantly grew by 65-percent, anchoring on the strong domestic demand condition as the country enjoys economic surge. AVID will sustain this momentum through relentlessly finding ways to respond and adapt to the evolving consumer needs and preferences,” said AVID president Fe Perez-Agudo.
The World Bank (WB) estimates that the Philippine economy grew by 5.8-percent in 2015, buoyed by robust spending in the public as well as private sectors. Surge in consumption will likely be sustained on account of election-related spending. However, the drop in exports is expected to remain because of dampened global demand and sluggish agricultural output, owing to the El Niño phenomenon that is expected to linger until the first quarter of this year.
The uptick in vehicle sales in 2015, resulting in double-digit growth, is expected to hold up, given the continued stability in the monetary environment. Sustained growth in vehicle demand mirrors bullish consumer confidence, challenging local players to keep on playing their “A” game in product and service offerings.