More cars will be populating the streets this year after the Association of Vehicle Importers and Distributors (AVID) registered a 103-percent growth, accumulating 45,420 units in the first half of 2016. This trumps last year's figures which only saw 22,371 units sold in the same period. Second quarter 2016 sales alone expanded by 74% with 24,260 units compare to 13,296 units the previous year.
Leading the way is the Light Commercial Vehicle (LCV) segment which saw a 113-percent surge in the first half of 2016. This equated to 28,802 vehicles, dwarfing last year's 13,495 vehicles sold. During the second quarter of 2016, AVID was able to post 15,251 units, 65-percent higher than the figures recorded last year. Contributing heavily in the sudden growth was Ford who joined AVID last May 2015.
Meanwhile, the Passenger Car (PC) segment sold 16,618 units which is an 87-percent rise from the 8,876 units recorded in the first semester of 2015. Boosting second quarter PC sales was primarily driven by Hyundai after the automaker posted a 93-percent growth, or 6,021 units sold.
“AVID sales surged by 103% in the first half of 2016 hinging on the entry of new, innovative, and reasonably-priced models. This growth will likely be the trend in the remaining months of 2016 with AVID’s value-packed products, attractive incentives, and unparalleled service,” said Ma. Fe Perez-Agudo, president of the Association of Vehicle Importers and Distributors, Inc. (AVID).
With sound macroeconomic fundamentals, the country's economy significantly grew by 6.9% in the first quarter of 2016 which is the highest since the second quarter of 2013, making the Philippines the fastest growing economy in the region. GDP growth is expected to sustain its momentum as the new administration vowed to continue macroeconomic policies implemented by the Aquino administration.
Externally, the heightened regional tensions coming from the recent arbitration ruling which favored Philippines over China on competing claims in the West Philippine Sea will likely keep key investors and markets on their toes. Nonetheless, auto purchase is seen to be tilted on the upside in light of increased consumer confidence and attractive roster of products.