The Association of Vehicle Importers and Distributors Inc. said vehicle sales fell 16 percent to 5,433 units in January from a year ago.
The group, representing 25 brands, said the drop was due to challenges posed by the Taal ash fall followed by the coronavirus disease situation, which was beginning to affect many local industries, including the automotive sector.
“2020 will be a very challenging year for the industry given the slowdown in automotive demand, supply chain disruptions, and dampened consumer confidence caused by these twin events. Fortunately, the Philippine economy remains strong backed by robust public spending, private consumption, and lower interest rates,” AVID president Ma. Fe Perez-Agudo said.
“I am confident that AVID members will adapt to and hurdle these challenges and bounce back even stronger in the coming months,” she said.
Sales of passengers cars declined by 31 percent in the first month of 2020 to 1,553 units from 2,258 units sold in the same period last year. The light commercial vehicles segment recorded a 7.3-percent dip to 3,855 units sold in January.