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Taal eruption drags vehicle sales by 11.8% in January


The Philippine automotive industry saw a retreat in the first month of the year as the Taal Volcano eruption in January paralyzed dealerships and operations of some vehicle retailers and manufacturers, according to an industry report.

The report, jointly prepared by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA), said total vehicle sales for January declined by 11.8% to 23,723 units from 26,888 units sold in the same month last year.

CAMPI president Rommel Gutierrez said the industry expects the slowdown  primarily due to the adverse effect of the eruption of Taal Volcano in Batangas.

"Majority of plants and some dealerships located in South Luzon were badly hit by ashfall, also affecting operations in some areas of Metro Manila. Some companies were also forced to temporarily suspend its operations for safety reasons,” Gutierrez said.

The industry group chief, however, said that the sector is "brimming with optimism" that a recovery is underway in the coming months, now that operations have normalized. 

"We will continue to work double time to catch up on last month's losses. We assure our customers the highest level of quality in our products and services because safety and consumer satisfaction are our priorities,” Guttierez said.

On a month-on-month basis, vehicle sales saw 29.6% decline from 33,715 units sold in December 2019.

The CAMPI-TMA said the month-month decline is “understandable” as this was the industry’s seasonal pattern for the past years, coming from the usual surge in sales in December holiday rush. —KBK, GMA News

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