By Bernie Cahiles-Magkilat
Sales of imported cars last year declined by a steep 17 percent in 2018 with sales slumping to only 88,700 as higher auto taxes and soaring inflation discouraged spending appetite for big purchases.
“Full year 2018 AVID sales recorded 88,700 units sold amidst unfavorable economic conditions. With new product launches and economic pressures seen abating moving forward, AVID expects that the industry will recover from the sales slump in 2019,” said Ma. Fe Perez-Agudo, president, Association of Vehicle Importers and Distributors, Inc. (AVID), which is composed of pure car traders.
Due to the confluence of high inflation, rising borrowing costs, soaring oil prices, and tax hikes, the Association of Vehicle Importers and Distributors sold 88,700 units, a 17 percent full-year contraction from last year’s 106,285 units sold, with dismal performance across all segments.
Accounting for 35 percent of the total AVID Sales, the Passenger Cars (PC) segment slipped by 22 percent in 2018 with 30,960 units sold. Leading the segment, Hyundai’s full year 2018 sales hit 19,905 units sold.
Posting lower decline, the Local Commercial Vehicles (LCV) segment saw sales drop by 14 percent, bringing the full year sales tally to 57,027 units versus preceding year’s 66,564 units. With 22,946 units sold, Ford ended the year as the best-selling brand in this segment.
Represented by JAC Automobile Int’l Philippines Inc., AVID’s Commercial Vehicle (CV) segment sold 713 units in 2018.
Of the 14 AVID members, HYUNDAI Asia Resources, Inc. contributed the biggest number of sales of 35,401 units although this was 6 lower than the 37,678 units sold in 2017.