Sales of Honda Cars Philippines Inc. plummeted by 17.4 percent to 14,298 last year from 17,320 in 2007, the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association said in a joint report.

As a result, Honda, which used to be the Philippines’ second-largest carmaker, shed its market share to 12 percent from 15.

Meanwhile, Toyota Motor Philippines Inc. (TMPI), the country’s biggest car company, maintained its market lead, posting overall sales to 45,915 units from 45,091 units in 2007.

Toyota was trailed by Mitsubishi Motor Corp., which was able to sell 17,539 units, a 17 percent hike from last year’s figures.

Universal Motors Corp., which distributes Nissan vehicles, reported the highest sales increase, selling 4,789 units in 2008, up from the previous year’s 3,330 units.

Similarly, Suzuki Phils., Inc. said sales rose by three percent to 2,182 units in 2008 from 2,125 in 2007.

GMANews.TV

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)

Manila Bulletin

Due to increased production cost brought about by the weakening of local currency, Honda plans to bring Civic prices to normal levels.  Effective December 01, 2008, price of all Civic models will increase by P20,000.  Base model Civic 1.8V with manual transmission will be priced Php 830,000.  The best-selling variant, Civic 1.8S with automatic transmission will be priced Php 919,000 while its top of the line variant 2.0SL with automatic transmission will be priced Php 1,150,000.The Civic comes in 1.8 liter engine (SOHC, 140ps @6300 rpm) and in 2.0 liter engine (DOHC, 155ps @ 6000 rpm) in i-VTEC configuration that delivers a perfect balance of power and fuel efficiency.  During Honda’s fuel economy drive entitled Honda Challenge Cup, the 1.8 Civic posted 21.48 km/li by Alan Sevilla of NU107 and Barbara Lorenzo of Businessworld.  Choosing a natural driving environment for the competition, media participants traversed traffic congested roads of Ayala Avenue, Sen. Gil Puyat Avenue, EDSA and even the highways of North Luzon Expressway on the way to Dau, Pampanga.

Embodying class-leading technology, promising fuel economy and excellent engine performance, the 8th generation Civic has made its mark worldwide.  Here in the local market, the Civic has won back-to-back premier accolades which include Car of the Year Award by the Car Awards Group Inc. and Automobile of the Year during the 3rd Auto Focus People’s Choice Awards.  These awards are a testimony to the living legacy of Honda to produce cars of the highest quality, geared towards total customer satisfaction.

The Civic is available in exciting colors: Nighthawk Black Pearl, Habanero Red, Bluish Silver and Alabaster Silver.  Exclusive colors available for the 2.0 li model are Carbon Bronze and Pearl White Mica.

For more details, you may contact any of Honda’s 24 dealership network or simply log on to www.hondaphil.com.