Auto dealers project better sales ahead
Although economic indicators point to a very marginal growth in local business activities within the year, Northern Marianas automobile dealers anticipate fresh cash flowing into their cash registers due to the projected increase in demand for new and used vehicles in the next months.
The anticipated increase in the demand for cars and automobiles will be spurred by the improving consumer confidence in the Commonwealth primarily due to positive developments in the local economy that include modest growth in arrival figures.
The Commonwealth Auto Dealers Association yesterday expressed optimism the local market will rally stronger in the next months as fueled by the continuing introduction of the year 2001 vehicle models.
CADA also noted special promotions offered by local auto dealers fueled the significant increase in sales of new cars during the month of May, which soared 15.5 percent compared with figures recorded in the same period last year.
A report released by the auto dealers group disclosed member companies sold an aggregated 82 new units last month, up from the 1999 tally of only 71 new vehicles.
Microl Corporation and Joeten Motors, which distribute Toyota and Nissan in the CNMI respectively, cornered the biggest chunk of the local market share retailing 31 new vehicles each last month.
Triple J Motors, local distributor of Hyundai, Mitsubishi, Isuzu, Suzuki and Subaru, sold 18 new cars for the same period while Midway Motors bartered two Mazda units in the same month.
The demand for used cars was also at its most encouraging state, with 65 units having been sold by all four local automobile dealers in the Northern Marianas last month. CADA members have traded 284 used units from January to May 2000.
In a media statement, Automobile Dealers Association president Jay Jones said the sale of used cars performed at its best, since the onset of the new millennium, during the month of May.
Microl Corporation captured 41.5 percent of the local market share for used vehicles, with Triple J Motors trailing on the second slot with 32.3 percent, Joeten Motors came in at third with 21.5 percent and Midway Motors had 4.6 percent.
Automobile dealers attribute the increase in the sale of both new and used cars in the month of May to the growing consumer confidence amid the recovery of the Northern Marianas economy.
They have also cited the increase in spending by corporate customers as reason behind the significant growth in new and used car sales figures last month. Dealers have also attributed the improvement to the special promotions offered on many year 2000 car models.
The local automobile sector was among the hardest hit by financial upheavals in Asia as it encountered dipping sales figures since the early part of 1998. The crisis also witnessed the departure of a leading car dealer’s Saipan sales office in June last year.
CADA had anticipated sales figures to remain at an all-time low for the rest of 1999 but raised hopes this year’s figures will improve compared with those recorded in the year ago amid the slow recovery of major economies in Asia and the Pacific.
