The market rallied back after a partial lifting of the ECQ
The Association of Vehicle Importers and Distributors, Inc. (AVID) maintained its trek toward a better normal in June 2020, posting 3,697 units in sales, or a 198% increase from the 1,239 units sold in the previous month.
While June has shown significant sales and recovery highlighting pent-up demand during the lockdown, AVID said many factors may continue to dampen industry sales in the coming months.
“While AVID members and their partner dealerships have gone to great lengths to COVID-proof their facilities, strengthen online e-commerce assets, and offer extraordinary promotions and deals to win back customers and encourage buying, headwinds remain. These include lower remittances, weaker demand, and the prospect of a second wave, so we can’t let our guard down,” said AVID President Ma. Fe Perez-Agudo.
The group, which is made up of 21 member companies representing 26 global brands, used the previous lockdown to develop COVID-ready processes, structures, and organizations. This allowed AVID members to quickly restart in the second half of May and serve customers in urgent need of maintenance, business enterprises, and customers seeking private mobility.
“They say, breakdowns lead to breakthroughs and we are seeing more and more innovations in the industry, highlighted by quick, efficient, and ‘contact-less’ services that allow us to adapt and create a ‘better normal’ for our industry. Ultimately, these changes will be good for our customers, giving them more value for every peso spent,” Ms. Agudo added.
With the closing of dealerships for over two months in the first half of 2020, AVID sales dropped by 54.8%, from the 43,082 units sold in the first half of 2019 to 19,455 units in the same period this year. Despite said drop across major segments, the auto industry is expected to undergo gradual improvement with more relaxed guidelines in the coming months and the reopening of more businesses.
“This is not the industry’s first crisis but it is surely the most challenging. We can’t face it alone, so we are closely working with Government and other stakeholders to help contain this pandemic while gradually reviving the industry in a safe and sustainable manner. Mobility is key to driving the economy forward and a stronger AVID, within and beyond this pandemic, will definitely play a key role,” Ms. Agudo ended.