The year 2017 was a good time for the Philippine auto industry. That’s according to the Association of Vehicle Importers and Distributors (AVID), which posted a sales figure of 106,268 units. That’s up from the 93,192 vehicles sold by AVID members in 2016.
The higher sales figure seems to have been driven by buyers’ rush to beat the higher vehicle prices brought about by the Tax Reform for Acceleration and Inclusion (TRAIN) implementation that took effect last January 1, 2018.Quarter four (Q4) sales alone were up by 24% to 30,336 units from the 24,438 cars and commercial vehicls sold during the same period in 2016.
Hyundai Asia Resources Inc garnered the top spot in the Passenger Car segment, with 25,529 units sold in 2017. This accounted for a large chunk of the 39,722 cars that rolled out of showrooms for the year—up from 35,782 units during the previous year.
Ford Philippines, meanwhile, took the top spot for the Light Commercial Vehicle category with 35,654 units sold in 2017. The last quarter of the year witnessed this class grow by 32% to 19,881 units. This made for a 16% jump in year-to-date sales, bringing the segment to close with a total of 66,564 units. That’s way higher than the 57,410 LCVs sold in 2016.
Despite the higher taxes, AVID is confident that it will weather the new challenge, thanks to continued economic growth. The reduced imcome tax rates may also help give consumers more financial freedom.
