Fitch: PH vehicle sales growth at 0.4% amid quarantine

Fitch Solutions forecasts Philippine vehicle sales to grow by only 0.4% this year due to the impact of the COVID-19 crisis.

The enhanced community quarantine in Luzon has shut down non-essential businesses like automotive dealerships, leading to a significant drop in new vehicle purchases.

Sales are expected to reach 371,456 units, lower than the previous estimate of 7.4% growth.

Fitch Solutions projects passenger car sales will contract by 1%, while light commercial vehicles will grow by 1%.

The government's PUV Modernization Program is delayed due to the crisis and transport operators are facing revenue losses from a collapse in commuter demand.