Sales of imported vehicles in the Philippines continued to pick up pace in the first four months of the year compared to last year, suggesting improving incomes in the domestic car market amid steady economic growth.
Figures provided by the Association of Vehicle Importers and Distributors (AVID) showed that the number of imported cars sold in the first four months climbed by 14 percent to 11,712 units compared to 10,283 units delivered within the same period last year.
The Light Commercial Vehicle (LCV) segment was the main driver for the spike in sales volume. LCVs sold in the January-April period reached 5,909 units, a 16-percent increase from the 5,080 units sold in the comparable period last year.
The Passenger Car (PC) segment also recorded a 12-percent rise in sales from 5,203 units in the January-April period last year to 5,803 units in the same period this year.
For the month of April alone, imported vehicle sales rose 16 percent to 2,657 units from 2,293 units in the same month last year.
Again LCVs fueled the growth, with deliveries surging by 28 percent to 1,412 units from 1,106 units in the same month last year.
Passenger car sales were up 5 percent in the month with 1,245 units sold against 1,187 units in April of last year. Ma. Fe Agudo, AVID president, expressed confidence that the strong sales volume would be sustained throughout the year.
“With AVID’s positive stretch since the start of the year, the group’s prevalent strength will be sustained on the back of our captivating offerings and strong pursuit for customer service excellence,” she said.
Agudo is positive that the automotive industry will be able to reach double-digit growth in sales by the end of the year given the strong economy.
“Backed by good governance and strong macro fundamentals, the Philippine economy marked another feat as Standard & Poor’s upgraded the country a notch above investment grade. As investor sentiment is expected to take off following this credit rating milestone, the Philippines is projected to reach its growth target of 6.5 to 7.5 percent by year-end,” she explained.
“With the Philippine economy’s rosy outlook, Filipinos’ appetite for new cars is expected to surge ahead, propelling sustained growth in the industry. By year-end, the automotive industry will continue to perform in full force and is projected to reach double-digit growth in sales,” Agudo added.