The Association of Vehicle Importers and Distributors (AVID) posted a 151-percent sales growth the first quarter of this year against the comparable period last year, bringing the year-to-date sales tally to 21,160 units.
Sales in the passenger car (PC) segment increased by 81-percent with 7,609 units sold in the first quarter versus the 4,205 units sold recorded in the same period last year. Quarter-on-quarter figures also grew by 13-percent, led by Hyundai with 5,186 units sold.
The light commercial vehicle (LCV) segment, on the other hand, significantly went up by 220 percent to 13,551 units in the first quarter compared to the 4,229 units of the same period last year. In terms of quarter-on-quarter sales performance, the group picked up by 4 percent with Ford taking the largest share of the expansion.
“As the Philippines continues to be Asia’s bright spot, AVID registered a triple-digit growth of 151-percent in the first quarter of this year. This growth will further motivate AVID to give customers value-laden and pioneering products and services, which drive at the hearts of the Filipino people,” said AVID president Ma. Fe Perez-Agudo.
Sales, economic outlook
The Philippines is expected to maintain its healthy economic track record on the back of sound macroeconomic fundamentals amidst the global economy slowdown. This positive outlook is supported by the upwardly adjusted forecast of debt watcher Standard & Poor’s (S&P) that raised its economic growth forecast for the Philippines for 2016 to 6 percent from 5.7 percent. Private consumption will continue to drive gross domestic product growth from the healthy demographics of the fast-growing middle class. This will be further bolstered by election-related spending and infrastructure projects. However, exports are expected to be tilted on the downside as a result of the weak global demand.
Inflation picked up speed in March 2016 as it hit 1.1-percent from 0.9-percent logged in February 2016. This was driven by the increase in food prices because of the El Nino, and recovery of oil prices. The Bangko Sentral ng Pilipinas, in response, keeps the interest rates unchanged. Given the attractive financing packages and upbeat Philippine economic prospects, the demand for vehicles is poised to keep its upward trend in the coming months.