Sales of imported vehicles rose to 24,880 units last year, 4 percent higher than the 23,986 units sold in 2010, figures released by the Association of Vehicle Importers and Distributors (Avid) showed.

Avid President Maria Fe Perez-Agudo said the December sales of car importers also grew by 4 percent year on year to 1,868 units.

“The increase in sales for 2011 was due to the wide acceptance of new and refreshed models, strong advertising, use of multimedia platforms, effective promotions and aggressive financing packages,” Agudo said in her report.

The report also showed that passenger cars were the most popular among all vehicle types, posting a 16-percent increase in sales for 2011.

Of the six members of Avid, Hyundai Asia Resources, Inc. (Hari)—headed by Agudo—accounted for the lion’s share of sales for 2011 with 20,297 units. The Covenant Car Co. Inc.—the importer of Chevrolet vehicles in the country—posted the second biggest sale at 2,763 units. Despite the economic crisis currently gripping developed economies, Avid said it is confident in the resiliency of the Philippine economy.

Avid took note of the strong “macroeconomic fundamentals” that will keep the economy afloat. The group also cited the forecasts of the World Bank, Asian Development Bank, and the International Monetary Fund that the Philippine economy will grow by 4.2 percent this year.

“As the Philippine economy continues to be resilient against global economic pressures, Avid is confident that 2012 will mark another year of innovation and game-changing initiatives that will keep our brands alive and our customers happier,” Agudo said.

For 2012, Agudo said distributors of imported brands are expected to introduce new models and implement programs that seek to “strengthen brand presence” in the Philippines.

Business Mirror Online

Tsikot.com Philippines

Local vehicle importers expect sales to grow further next year on the back of strong consumer sentiment that will be sustained by faster economic growth.

The outlook, issued by the Association of Vehicle Importers and Distributors, Inc. (AVID), came as sales of foreign-built vehicles have fared better than their locally assembled counterparts.

“AVID is still firming up its forecast [for 2012] but it is optimistic to beat its 2011 market share,” it said in a statement.

“Against a backdrop of global and domestic economic challenges, [AVID is] confident that consumer sentiment will remain favorable while affirming its members’ brand resiliency and affinity with their customers… [through] a strong portfolio of products and services…,” it continued.

The group’s sales were up 4% to 23,012 units as of November. This compared to a 1.9% decline reported by the Chamber of Automotive Manufacturers of the Philippines, Inc.

“Our positive outlook is based on a stable and growing economy driven by sustained [migrant worker] remittances, managed inflation, and external stability,” the statement read.

AVID, which claims a market share of 15%, is a private non-stock, non-profit business association organized in the Philippines in July 2010, is composed of ten members which include British United Automobiles, Inc, CATS Motors, Inc., Focus Ventures, Inc, Foton Motor Phils, Hyundai Asia Resources, Inc, Jaguar Cars, Inc., Motor Image Pilipinas, Inc., PGA Cars, Inc., Scandinavian Motors Corporation, and The Covenant Car Company, Inc.

Business World Online

Tsikot.com Philippines

Sales of foreign-built vehicles have fared better than their locally assembled counterparts as the , Inc. (AVID) reported on Monday the slight growth in the last 11 months thanks to a pickup in holiday spending.

Aggregate sales last month grew 4% to 23,012 units from 22,187 for the same period a year ago on improved business and consumer sentiment and better branding activities by member companies. In November alone, AVID’s six members posted a combined 43% growth of 2,672 units from 1,872 last year.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), on the other hand, reported earlier a 1.9% decline in 11-month sales amid another supply setback caused by the floods in Thailand that lasted from October until last month. Earlier, CAMPI members also suffered from similar disruptions caused by the earthquake and tsunami that struck Japan in March.

AVID has thus maintained its 15% market share against larger car companies mostly belonging to the chamber.

Passenger cars led AVID’s growth with a 79% rise in sales, while light commercial vehicles grew by 3%.

AVID did not provide a breakdown for the two market segments.

“Creative and steady brand building activities by AVID member companies contributed heavily to the better-than-industry November sales performance,” the statement read.

“Growth from the country’s sound macroeconomic fundamentals, robust overseas Filipino remittances, strong investment inflows, and higher consumer spending with the onset of the Christmas season are the key factors to an optimistic business outlook in the next six to 12 months,” it added.

Hyundai Asia Resources, Inc., led the pack with 18,922 vehicles sold for the 11-month period.

The Covenant Car Company, Inc., importer of American automotive brand Chevrolet, came in a distant second with 2,434 units, followed by CATS Motors, Inc., importer of the German Mercedes Benz, with 892 cars.

“Strong sales of AVID in November bode well for promising prospects in 2012 with expectations of global and domestic economic improvements, positive consumer outlook and sustained resiliency of AVID brands,” AVID President and Hyundai Motor Co.’s local division Chief Executive Officer Maria Fe Perez-Agudo said in a statement.

Eliza J. Diaz, Business World

Tsikot.com Philippines

In celebration of Chevrolet’s 100th birthday, Chevrolet Philippines pulled out all the stops to offer the Philippine market the best easy ownership plans, freebies, prizes, exciting car launches and a sneak peek at the newest Pickup Truck to say “thanks” on behalf of Chevrolet Philippines – The Covenant Car Company, Inc. (TCCCI) – exclusive importer and distributor of Chevrolet automobiles, parts and accessories in the Philippines.

It’s difficult not to get sentimental over the passing of a hundred years when you’ve got a past as storied as Chevrolet does. It makes it even harder when you realize that the long and winding road from such humble beginnings has developed into this icon that is recognized the world over. A hundred years might be a long time, but Chevrolet managed to hold on to many of its most revered traditions after all these years, and that includes the automobile extravaganza that is the Motorama. The first one in 1949 was envisioned as a huge event to showcase the future of motoring. And since 2011 happens to be the centennial anniversary of the Bowtie, there were a lot in store for guests on top of all the surprises that Chevrolet Philippines had prepared for an event as big as the Chevy Motorama. So from November 11 to 13 at the Music Hall of the Mall of Asia, a great number of car aficionados gathered as well as the auto buying market in one grand event with Chevrolet Philippines – The Covenant Car Company, Inc. (TCCCI) – exclusive importer and distributor of Chevrolet automobiles, parts and accessories in the Philippines as it took its hat off to its racer/auto engineer founder, Louis Chevrolet. The momentous occasion looked back at all the wondrous iconic vehicles and went back in time via a show full of reminiscing, glee and excitement that highlighted the milestones of Chevrolet’s century of existence.

TCCCI officially kicked off the bowtie’s birthday with its brand ambassador, Ryan Agoncillo, on the helm of the biggest Motorama event and program to date.

TCCCI President and Managing Director, Atty. Albert Arcilla expressed excitement in behalf of the entire Chevy Family by saying that, “Chevrolet celebrates its first 100 years with the same core values it has always had; dependable technology, expressive design and great value. The Motorama is a great way for us to engage the steadily increasing network of Chevy enthusiasts that have been instrumental in growing the brand Chevrolet in the Philippines and for our 2-year old company, Chevrolet Philippines-TCCCI attain phenomenal recognition and accomplishments for the brand with our Chevy Cruze winning the Car of the Year 2010-2011 and being declared No. 1 in Customer Satisfaction in Aftersales Service by the independent survey conducted by J.D. Power Asia Pacific besting all other brands in the market. We are truly grateful to the Filipino market for such a warm welcome and for making Chevrolet a part of their life’s journey.” It’s on this same note of thanksgiving that he expressed his gratitude through his message that was presented in an AVP during the program.

The list of distinguished guests in attendance include US Ambassador to the Philippines, his Excellency, Harry Thomas, Jr. who was there to show support for Chevrolet being an iconic American brand; Chevrolet Philippines’ Chairman Emeritus, Richard L. Lee, and President of General Motors for Southeast Asia Operations, Martin Apfel and Antonio Zara, VP for Sales, Marketing and Aftersales of GM Southeast Asia Operations, who saw the success of the event as yet another positive sign that Chevrolet’s popularity in Asia is not just a trend but an indication that emerging markets like the Philippines are going to continue reaping successes and will carry on in giving a much stronger Chevrolet presence in the Philippines in the near future.

Philippine Star Online

Tsikot.com Philippines

Honda Cars Philippines Inc. (HCPI) has reduced the number of Jazz and CRV units that they are recalling by 4,620 units after it realized that these units have different design of power window master switch.

Last Monday, Honda announced the voluntary recall of 19,143 units of combined year. 2005-2007 Honda Jazz, year 2006-2008 City and year 2005-2008 CR-V models to replace the power window master switch assembly with countermeasure parts.

However, in a press statement, HCPI said that after a careful study, the number of affected vehicles is reduced to 14,883 units. The other 4,260 units which are not included in the recall have a different design of power window master switch which was supplied by other parts supplier. For easier reference, City units with central door lock function are not included in the recall.

The silicon component commonly found in air fresheners or automotive cleaning agents, etc. enters into the power window master switch. This accelerates wear in the contact area and over time, wear particles accumulate between the power source and ground of the unit switch. The resin material of the unit switch is then heated and carbonized. This may cause smoke and in worst case, partial burning of the window switch cover. To date, no accidents or injuries have been reported related to this defect in the Philippines

To conduct the voluntary recall in an orderly manner, customers are requested to call their respective dealers. Replacement of affected parts will be carried out in all 28 authorized dealers and 3 service centers nationwide, free of charge and will take no more than 30 minutes.

Philippine Star

Tsikot.com Philippines

The local automotive industry reported a decline in sales for the first eight months of the year due to the effects of the disasters in Japan that limited the production and supply of some models.

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) in a joint report showed a 4.1 percent decline in January to August sales from a year ago level. During the first eight months of 2011, total industry sales stood at 93,108 units, lower than the 97,122 units recorded a year ago.

Month-on-month, however, the August sales performance was slightly higher at 11,558 from 11,550 in July due to introduction of new model, continuous promotion and availability of units.

Toyota Motor Philippines Corp. sold 34,190 units or 36.72 percent of total market share.

This was followed by Mitsubishi Motors Philippines Corp. with sales of 21,182 units or 24.43 percent market share. Third was Honda Cars Philippines Inc. with 9.73 percent market share or 9,062 units followed by Ford Motor Company Phils. Inc. with 8.81 percent or 8,200 units and followed by Isuzu Philippines Corp. with 6.72 percent or 6,259 units.

Sales of passenger cars registered a 6.8 percent growth compared to last July’s figure but lower when compared from a year ago level.

Commercial vehicle sales decreased by 3.2 percent to 7, 532 in August from 7,782 units in July.

Philippine Star

Tsikot.com Philippines

Almost three months since Japan suffered a 9.0-magnitude earthquake, a tsunami, and a near nuclear disaster, inventories of crucial car supplies—from computer chips to paint pigments—are still not enough as Japanese factories that make them are not yet running at full capacity.

This has made quite an impact on the auto industry as car sales grew just 1.5 percent in the first five months to 59,022 units, from 58,176 units in the same period last year.

According to Chamber of Automotive Manufacturers of the Philippines Inc. (Campi)—whose members are mostly Japanese automakers—sales in May alone plunged by 11 percent to 10,913 units, from the previous year’s 12,266 units.

Campi president Elizabeth Lee attributed the drop in sales from the damaged plants that manufacture crucial auto parts and components as well as the airports used in transporting these parts to the country.

To cope with this development, local assemblers were forced to cut production to ensure that the parts in their inventory last until supply from Japan normalizes.

Opposite

The Campi result is different from the report submitted by the Association of Vehicle Importers and Distributors, Inc. (Avid) whose members are non-Japanese automakers.

Avid bared a 4 percent growth from a year ago.

“The 4 percent growth in Avid’s sales in May against total industry’s decline demonstrates the strategic advantages of our global supply platforms and brand management strategies to mitigate the risks of external crisis, like Japan’s disaster, and consumer vulnerability to economic uncertainties. We remain positive about the economic outlook for the year ahead and the resiliency of the domestic market to support our sales goals,” said Avid president Maria Fe Perez-Agudo, who is also president and CEO of Hyundai Asia Resources, Inc.

Avid sold a total of 1,952 units in May. This brings sales in the first five months of the year to 9,658 units.

In terms of market share, Avid accounts for 15 percent of the total market for May.

Still on top

Toyota Motor Philippines Corp. is still on top after selling 21,468 units in the first five months enjoying 36.4-percent share of the market.

Mitsubishi Motors Philippines Corp., which claimed second place with sales reaching 14,062 units (a market share of 23.8 percent), posted better results in May after registering 3,117 units sold, slightly ahead of what perennial leader Toyota’s 3,017 units sold in May.

Non-Campi member Hyundai Asia Resources Inc. (Hari), which posted a 3-percent sales growth of 8,062 units in the first five months of the year, sold 1,552 units in May (ahead of Honda Cars Philippines’ figure of 1,115 units sold in May).

Lee said they expect the slow growth to last until June but hope that by July sales would slowly recover.

Campi projected a sales growth of 4-5 percent for the industry this year.

Philippine Daily Inquirer Business

Tsikot.com Philippines

Chery Motors Philippines Inc. (CMPI), the exclusive distributor of China’s Chery cars, will open an assembly plant in the country, company officials said.

The facility will produce cars for the Philippines and other Asian countries.

CMPI chief executive officer Si-Chung Chang yesterday said the local assembly will start small and then expand later. He said that if production hits 1,000 units, the facility will start exporting to Vietnam, Laos and Cambodia, to serve the left-hand drive market.

In the meantime, Chang said the company will collaborate with a local assembly plant for its initial production before the yearend. Two compact Chery models are being eyed
for production.

Chang said that if they see improvement in the business with the facility here, they will later set up a company-owned assembly plant, possibly in three years. The estimated investment for the plant is $20 million.

Putting up an assembly facility in the country would also help the company cut costs in terms of import duties, which stands at 40 percent. Once set up, the facility will also help generate employment in the country as well as lower car prices by 10 to 15 percent, Chang said.

Chery Automobile entered the Philippine market in 2007. The QQ model is said to be the company’s best-selling car in the country. Sales, however, dropped dramatically in 2009. Chery closed a majority of its dealership in the country.

Coming back

“Sales dropped at the time (because) there was a deficiency with our after-sales service and some spare parts were not made available in the market. But now that we are slowly coming back in the market, we are re-establishing the Chery brand in the Philippines,” Chang said.

He assured consumers that the company will be making their parts available to better serve the Philippine market. “With Chery China growing fast every year, at 50 percent sales increase since 2007, we see no reason not to improve in the Philippines,” Chang said.

“We are now strengthening the area in the business where there are deficiencies, especially in the after sales service for our clients,” said Raymond Basubas, operation manager and dealer of Chery Automobile in Cebu.

CMPI was established early this year after it formally took over the distribution of the Chery brand of vehicles from Chery Iseway Motors. Chang said the new company made major improvements in specific areas of operations focusing on parts inventory and distribution, service center expansion and customer management. He added that the company will also shift focus on the provincial markets where the opportunities are greater.

“We have taken inspiration from other non-famous automotive brands in the Philippines and the willingness of the Filipino car buyers to try new things,” Chang said.

He also sees a positive outlook in the car manufacturing industry in the Philippines, identifying population growth as one main driver that will fuel growth in the industry.

CMPI sold 150 units in the first five months this year.

Sun Star Cebu

Tsikot.com Philippines

The local auto industry is asking the government to help local car manufacturers by lowering excise taxes, making permanent investment incentives and buying locally assembled vehicles.

In a press briefing on Thursday, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Elizabeth H. Lee said there is a need to strengthen the completely knocked down (CKD) business because it is where the jobs are.

Lee estimated that the auto industry supports half a million families as it employs 74,000 workers.She said CAMPI has met with the Board of Investments (BOI) last month to discuss ways to help cushion the industry from the effects of the slowdown in consumer demand.

Lee said one of the measures proposed by CAMPI was to at least lower the excise tax imposed by the government. A two percent excise tax is placed on 600,000 units; 12 percent up to 1.2 million units and 20 percent on the excess.

“It is pretty hefty. We are asking if this can be shaved,” Lee said.

However, because the government is getting its money for the economic stimulus fund from taxes, Lee said they have also proposed other measures. She said they have asked the BOI to permanently include the industry in the government’s Investments Priorities Plan (IPP).

The IPP, which is changed annually, lists industries that can qualify for tax breaks. No industry is permanently included in the IPP.

For this year, Lee said they are hoping that they will remain in the IPP to encourage capital infusion.

Likewise, Lee said the government must prioritize buying locally assembled vehicles for their re-fleeting program.

“This is similar to President Arroyo’s buy Pinoy, buy local program, which encouarages local government units to prioritize locally made products over imported ones,” she explained.

Aside from this, Lee appealed to the Bangko Sentral ng Pilpinas (BSP) to amend its rule that requires 20 percent down payment for vehicle purchases. Lee explained that whenever car companies offer a zero downpayment scheme, the firm must shoulder the initial cash outlay.

“Reducing the required down payment will help us. At the same time, maybe they (BSP) can also lower the interest rates,” she added.

Despite the call for help from the government, Lee stressed that the local auto industry is not in a crisis. She said the worse case scenario for the industry is a flat growth. Initial industry projection was at two to four percent growth for this year.

By Ma. Elisa p. Osorio, Philippine Star

Tsikot.com Philippines