Performance and Drivers
Compared with the 1% decline in total industry sales, the Association of Vehicle Importers and Distributors (AVID) opens the second quarter with a strong 31% growth in total sales from January to April 2012, with 10, 633 units sold from the 8,119 in the same period last year. This is due to AVID’s consistent robust sales of Passenger Car (PC) models, registering an 85% increase in total PC sales—from 3,526 to 6,527 units sold in the first four months of the year.
This year, April’s overall total sales rose to 12% as more consumers purchased models in the PC segment. In the same period, PC sales alone recorded 55% growth, with 1,324 units sold versus the sale of 852 units in the same month last year.
Sales and Economic Outlook
As the second quarter begins, overall consumer sentiment continues to be positive. The Philippines placed in the top 11 of most optimistic countries in the world according to Nielsen’s Global Consumer Index survey. The Philippine economy is expected to beat the 3.7% GDP growth of the previous quarter. Accelerated government spending on infrastructure projects and renewed investor confidence manifested in the 154% surge in Foreign Direct Investments (FDI) will sustain growth amid global economic concerns and the debt crisis in Europe.