British Research Firm Bullish on RP Vehicle Mart
PHILIPPINE auto sales may grow at a rate that is higher than what the local industry expects, according to a new study by the Business Monitor International Ltd.
The study also indicated that the relatively unserved market segments would boost growth prospects for 2009.
The London-based market research firm said sales could grow by 8 percent, to more than 127,000 units. The projected growth rate, however, is lower than the 18.3 percent posted in 2007.
The Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association said they were expecting to sell only 125,000 units this year, or a growth rate of 6 percent.
“Although BMI expects production to rise in 2008, local assembly is under threat from moves to reduce import tariffs, which would erode the competitive advantage of local manufacturers,” the study said.
Toyota Motor Philippines Corp., being one of the firms that use a high level of local content in its vehicles, would be particularly hit hard, it added.
Still, BMI said industry newcomers had not been deterred, with Chinese carmaker Geely making its debut initially through importation of completely built units and targeting domestic assembly of kits.
BMI added that both Toyota and Geely were expected to tap into market segments that had been relatively unserved, with the latter producing low-cost cars for the BCD income brackets.
Further, BMI cited plans of Toyota to further boost its share of the market through the launch of the Lexus premium brand.
In an interview last week, TMPC president Hiroshi Ito said the company was finally pushing through with the launch of Lexus in mid-January.
Ito said five models–which he declined to name–will be launched simultaneously along with the brand next month.
“A sixth model will be added later to complete the line up for the year (2009),” he added.
He said the introduction of Lexus in the Philippines had been held off several times, partially on account of a still unfinished facility at the Bonifacio Global City.
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