Demand for Vans, Pickups to Keep Local Carmakers Afloat in 2009
Demand for vans, utility vehicles, and pick-up trucks will keep the Philippine automotive industry afloat amid the anticipated economic slowdown in 2009.
Appetite for commercial vehicles will result in a four percent sales growth next year, lower than the industry’s year-to-date expansion of ten percent, the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) said. “Although the growth forecast may be lower than this year’s ten percent growth so far, auto players remain cautiously optimistic given the local industry’s better performance versus that of other developed markets,” CAMPI president Elizabeth H. Lee said in a text message sent to GMANews.TV.
The group expects to sell 130,000 units in 2009, 5,000 less than this year’s targets.
Latest data from CAMPI showed the industry sold 104,757 units from January to October this year.
Lee said 65 percent of the vehicles sold for the ten-month period are geared for commercial use.
Lee, who is also an executive vice president of Universal Motors Corp., said car buyers will continue leaning towards purchasing commercial vehicles in 2009.
“I think the trend for commercial vehicles will continue mainly because these types of vehicles give you dual purpose. You can use a van, for example, for business during the week, and use it to take your family out of town during the weekends,” Lee said.
Crisis prompts car buyers to be smarter
Toyota Motor Philippines, Inc., which leads the industry in terms of the number of units sold, agreed with CAMPI’s outlook.
In an interview, company first vice president for sales and marketing Danilo M. Isla said Toyota manufactures vehicles at a 60 percent to 40 percent ratio in favor of commercial vehicles over passenger cars.
“It is going to be similar (in 2009) although we are not as aggressively forecasting due to the recent economic situation,” Isla said.
Isuzu Philippines Corp. is also banking on its Asian utility vehicles and pick-up trucks to prop sales in 2009.
Besides the multi-purpose feature of the commercial vehicles, Isuzu vice president for corporate business Arthur D. A. Balmadrid said the company also has an edge in offering diesel-powered vehicles as this type of fuel is cheaper than gasoline.
Lower sales in 2009 may be booked in Isuzu’s sport utility vehicle (SUV) segment, which could fall by eight percent.
“There are a lot of new models coming in so there will be a lot of competition,” Balmadrid said.
For Mitsubishi Motors Philippines, Inc., the impact of the 2009 economic slowdown would likely be felt in the entry-level vehicles like sedans and compact SUVs.
“We expect some banks to be stricter in approving loans,” said Mitsubishi Philippines assistant vice president for marketing services Froilan Dytianquin.
Car manufacturers expect that the current economic setback will prompt buyers to be smarter.
“For 2009, I think people are going to be a lot more scrutinizing. They would have a lot of criteria before they purchase a vehicle,” Lee said.
Value for money would be on top of the Filipino consumer’s list in challenging economic times, Lee added, justifying the forecast that commercial vehicles will continue to be a popular choice.
Lee said while there is a perception that second-hand cars are more pocket-friendly due to their lower purchase cost, consumers also consider the lower maintenance cost and the fuel-efficiency of brand new vehicles.
Many motorists are also more environment-conscious who would likely go for cars which have lower harmful emission levels, she said.
by Anna Barbara L. Lorebzo, GMANEWS.TV
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