Published in Malaya Business Insight on May 19, 2020/By Raymond G.B. Tribdino
Steven Hu, President of the Yulon Finance Philippines Inc., an independent financing company that has introduced innovative financing solutions for both the car buyer and dealer believes it is not possible to return to the old ways.
“COVID-19 already changed everything. I think it’s not possible to return old ways. We need to adopt new normal. If we take what Taiwan experienced in 2003 when SARS attacked as an example, we see how people purchased private cars to avoid crowds of people inside public transportation,” Hu said.
He estimates that it is possible in the second to third quarter of the year, the automotive market might have chance to recover sales lost from March 16 to the present. The long term sales impact, will be dependent on the stability of the economy.
“GDP might decline to from 6% to 0% this year, the total auto industry demand might decrease 10%~20% compare to past 3 years average,” the former Nissan Motor Philippines Inc Vice President for Marketing and Sales added.
Hu is however upbeat that the industry can recover.
“I do believe the big crisis also create big opportunity. The market still has a chance of recovery in the 3rd and 4th quarters. It may not be a total recovery, but the effect will be halting the market from further shrinking. When people get used to “new normal” and when vaccine available in the market next year, the market might jump up again.