Q1 sales slowed for vehicle importers

Vehicle importers suffered a sales slowdown in the first quarter as higher auto excise taxes dampened demand for new purchases.

Total sales slid two percent to 22,758 units from 23,317 units in the same period a year ago.

The Association of Vehicle Importers and Distributors (AVID) attributed the decline “to market adjustments to the impact of higher auto excise taxes due to the implementation of the TRAIN (Tax Reform for Acceleration and Inclusion) Law.”

AVID said the spike in inflation may have likewise restrained consumers’ auto buying intentions.

The Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association earlier this month also reported lower sales during the January to March period due to the new excise tax regime.

AVID said the passenger car segment, which seemed less volatile than the light commercial vehicle segment, posted sales of 9,189 units in the first quarter, down from 9,247 units in the same period last year.

Korean brand Hyundai continues to rally for the segment, accounting for 68 percent of total passenger car sales.

The light commercial vehicles segment, meanwhile, rolled out 13,569 units, four percent less compared to the 14,070 units sold in the first quarter of 2017.

American brand Ford led the segment with sales of 6,273 units.

Despite the first quarter sales drop, AVID is maintaining a rosy outlook for the year “behind the steady and strong demand for the excellent products that each member company offers.”

“AVID capped off the first quarter with 22,758 units sold. Despite given market challenges, we remain resolute that the stabilizing market condition and the influx of new products and services will serve as ample boost as we wind-up for a stronger 2018,” AVID president Ma. Fe Perez-Agudo said.