Honda Projects 10% Sales Growth with Launch of All-New City Models
January 8, 2009 by Tsikot
Honda Cars Philippines Inc. forecasts over 10 percent increase in sales this year from a negative 17 percent growth last year as it invests P140 million for the local assembly of its all-new City models, which are expected to drive the company back to a growth path despite the turmoil in the global auto market.
HCPI president Hiroshi Shimizu told reporters at yesterday’s launch of the locally assembled City 2009 the global crisis that is harshly affecting the auto market abroad is not seriously affecting Philippine auto operations.
“There is no big impact in the Philippines compared with other countries,” Shimizu said.
In fact, Shimizu said the company expects over 10 percent increase in sales volume this year from last year’s 14,300 units, which was a 17 percent decline versus 2007 sales.
Shimizu said the sales growth would be driven by the expected strong demand of the All-New City model for which the company invested P140 million for new tools, jigs and equipment for the City CKD assembly at its plant in Sta. Rosa, Laguna.
City is expected to sell 7,000 units this year from last year’s 5,000 units.
City and Civic models are HCPI’s volume sellers accounting for 65 percent of its total sales. Both are assembled locally as CKD packs.
Shimizu expects City to outperform Civic this year.
Shimizu said the City would be its only new model introduction for the entire year the rest would be minor upgrades of existing models.
HCPI finished third biggest carmaker this year after Mitsubishi Motor Philippines Corp. grabbed the second slot.
Shimizu said their sales performance was pulled down by the poor performance of its other models.
Shimizu said they are not conscious about market share stressing its priority is always customer satisfaction.
“Can we survive with market share?” he asked.
Instead, the company is expanding its reach with the opening soon of its 25th dealership in Batangas and another Service Center in Tandang Sora.
In terms of exports, Shimizu said they were able to increase its export last year to P4 billion worth of transmissions and other auto parts last year.
But with the global crisis this year, the company is not confident of increase in its exports. It exports to UK, India and Southeast Asia.
Shimizu is confident that its All-New City will pull its sales this year as it has done in the past.
Since its introduction here in 1996, City has generated cumulative sales of over 43,000 units grabbing a fair share in the passenger car segment.
The All-New City comes in four variants with introductory prices starting at:
1.3-liter A MT P676,000
1.3-liter S MT P716,000
1.3-liter S AT P756,000
1.5-liter E AT P806,000.(BCM)
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