AVID 1Q SALES DROP 34%

AVID 1Q Sales drop 34%; prioritizes new normal safety protocols in dealership operations

Lifestyle On Wheels

CARSIDE

The Association of Vehicle Importers and Distributors, Inc. (AVID) – with 20 member companies representing 26 global brands – recorded sales of only 14,404 units equivalent to a 34.4% drop in the first quarter of the year amid the great lockdown caused by COVID-19. 

Most, if not all, dealerships and their accompanying repair and maintenance facilities have been closed since March 16, 2020. 

“The local industry is reeling from this invisible enemy as vehicle manufacturing, importation, distribution, and maintenance have stopped completely. Demand has likewise declined as consumers spend on more urgent needs. With this disruption, we estimate that car sales may drop by around 40% for the year,”

Ma. Fe Perez-Agudo, AVID President

“The industry is no stranger to adversity but this pandemic will be our toughest challenge yet.  We estimate that it would take at least 12 months for the local industry to recover once the ECQ is completely lifted. There will be a ‘new normal’ and we must be quick to adapt since Filipino consumers will be even more prudent and looking for more value in their purchases,” Ms. Agudo added.

The Passenger Cars (PC) segment declined by 43% in the first quarter of 2020 with 4,506 units sold versus the 7,848 units in the same period last year. Hyundai leads this segment with 2,724 units sold, followed by Suzuki with 1,127 units and Ford with 415 units.

In the Light Commercial Vehicles (LCV) segment, year-to-date sales dipped by over 29% with 9,806 units sold. Ford leads this segment with a total of 3,479 units while Hyundai comes in second with 2,797 units closely followed by Suzuki with 2,740 units.

Commercial Vehicles (CV) sales declined by 62% to just 92 units over the period. 

2nd quarter sales may dip even further due to the ECQ for the whole month of April and at least half of May in major urban areas.  

AVID noted, however, that despite the bleak short-term outlook, many members have joined the nation’s battle to fight COVID-19. Several AVID companies are providing free mobility which includes the transport of our front liners, medical supplies, and essential goods across the country. Some have donated personal protective equipment (PPE), masks, gloves, etc. to COVID facilities. Others are supporting their home communities and LGUs. 

“Mobility is the lifeblood that drives the nation’s economy and this has been further underscored by this pandemic. Hospitals, groceries, and other essential establishments rely on mobility for sustained operations. We are working closely with our stakeholders so we can resume our operations, especially our repair and maintenance services, in a manner that protects the health and safety of our workforce and customers, once the ECQs and GCQs are lifted,”

Ms. Agudo added.

AVID member companies have used the lockdown to develop COVID-ready processes, structures, and organizations. Health protection and safety strategies are being put in place for employees, business partners, and to meet the emerging needs of the customer in the next normal environment. It added that the industry is very much aware of the protocols on social distancing – wearing of appropriate protective equipment, and additional sanitation measures—which it committed to observe. As an added layer of protection, some AVID members will be conducting antibody testing prior to the re-entry of their workforce. This will be done as part of Project ARK, a private sector-led initiative to conduct mass testing for the new coronavirus at the community level.

“AVID fully supports the government’s initiatives to combat this pandemic and we remain optimistic and confident in the tried and tested resilience of the Filipino. The timely restart of the automotive sector is of utmost importance to mitigate the impact of this crisis since tens of thousands of Filipinos and their families depend on this sector. There is life after COVID and we will be there to ensure better journeys ahead,” she ended.

Based on government data, the Philippine automotive sector, directly and indirectly, employs 408,000 people.

FOLLOW @LifestyleOnWheels, @CarSide, and @MotorsikloNews on Facebook and Instagram. SUBSCRIBE to our Youtube Channel. Lifestyle On Wheels TV, and VISIT our website, motorsiklonews.com for your latest motoring lifestyle update. WATCH Traffic Network daily on @PinoyExtremeChannel.

Article / Photos: AVID Secretariat
Production: J AD Media

#COVID19 #AVID #LifestyleOnWheels #CarSide #TrafficNetwork #PinoyXtremeChannel

You May Also Like

2 thoughts on “AVID 1Q SALES DROP 34%

  1. Thanks for every one of your work on this site. My daughter delights in going through investigations and it is easy to understand why. A lot of people learn all concerning the compelling method you make both interesting and useful items via this blog and boost contribution from other ones on the issue while our favorite child is understanding a whole lot. Enjoy the remaining portion of the year. You are always doing a really good job.

  2. You have made some really good points there. I looked on the internet for more info about the issue and found most people will go along with your views on this web site.

Leave a Reply

Your email address will not be published. Required fields are marked *