To explain this oxymoron – yes, another model has again been added to the Prius family… and this time it’s a smaller sibling: a compact hybrid called the Prius C.

The Prius C was first revealed as a concept car in the 2011 Detroit Auto Show, and as early as then, Toyota had already announced their plans to mass produce the compact concept in the early part of 2012. True to their word, Toyota Motor Philippines (TMP) recently unveiled this much-awaited new hybrid to the Philippine motoring press last Friday, during a thanksgiving party at the Hotel Sofitel, celebrating the company’s 10th triple crown feat. TMP president Michinobu Sugata was more than happy to share the exciting news.

The new Prius C showcases Toyota’s “eco-fun” design concept, presenting a compact body with active proportions. This hatchback is about 19 inches shorter than the standard 3rd generation Prius; is two inches narrower, almost two inches lower, and slightly more than 500 pounds lighter. It is in fact, rather reminiscent of the Toyota Yaris.

The C stands for: Compact, Clean, Clever and City. Needless to say, it is equipped with the same HSD (Hybrid Synergy Drive) technology that Toyota has innovated to produce excellent drive-ability and unparalleled fuel economy. Admittedly, the Toyota Prius line has always been one of my all-time favorite cars.

This new compact is powered by a 1.5-liter, 4-cylinder 1NZ-FXE VVT-i Atkinson cycle engine that is Euro-5 compliant. It uses an EGR (Exhaust Gas Recirculation) system to enhance engine efficiency, and also an electric power pump. The car has an aerodynamic front splitter, and even ridges on its hood (for the wind to flow through) – bringing its drag coefficient to an impressive 0.28. And as in all new Prius models, the driver can select among the Normal, Eco and EV (electric vehicle) drive modes, based on his driving preference.

Just like the standard Prius models before it, the Prius C does not need to be plugged-in to an electric source to be recharged – it uses a regenerative braking system that allows the battery to charge as you drive. It uses a nickel-metal-hydride battery pack, which is now located underneath the rear seats, together with the gas tank, each in their own steel casing. (As opposed to the standard Prius that has its battery pack under the rear deck). Cooling vents are also seen under the seats, to make sure that the heat is released.

Apparently, moving the battery and gas tank below the rear seats also had another advantage: It lowered the car’s center of gravity – making this gas-sipper even more fun to drive.

On the inside, the dash has an angular design; the instrument panel is still centrally located and high-mounted; although I think the most noticeable change is how the Prius-signature floppy toggle is now back to a conventional gear selector on the center console.

Other standard features inside the car include automatic climate control, a 3.5-inch color information display, Bluetooth hands-free mobile phone capability, an iPod interface, USB connectivity and remote keyless entry.

This compact hybrid will be primarily available in the following colors: Lime White Pearl, Silver Metallic, Gray Metallic, Extreme Black and Super Red. Also available through firm order, are the colors: Blue Metallic, Freedom White, Aqua Mica Metallic, and Mandarin Orange Mica Metallic

The Prius C may come in any one of four options: Prius C Full Option (White Pearl) priced at P1,540,000, Prius C Full Option priced at P1,525,000, Prius C Standard (White Pearl) priced at P1,490,000 and Prius C Standard at P1,475,000.

For more information you may visit any one of Toyota’s 30 dealerships nationwide, or log on to the Toyota website: www.toyota.com.ph.

By Angel Rivero, The Philippine Star.  Photo by The Philippine Star

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In an effort to encourage the entry of new generation, environment-friendly vehicles, a proposed measure provides for tax and duty-free importation and assembly of vehicles that run on alternative fuels.

But the Board of Investments (BOI) wants to clip the duration of the privileges and cap the volume to promote local assembly of these vehicles.

In a position paper on a Senate bill entitled “An Act Providing Incentives for the Manufacture, Assembly and Importation of Electric, Hybrid or Alternative Fuel Vehicles and for Other Purposes,” the BOI agreed to eliminate taxes and duties to bring down their prohibitive costs but also proposed non-fiscal perks such as special parking areas, convenient public charging stations and special lanes on EDSA and in toll plazas on expressways.

The BOI said the privilege of tax and duty exemption should be limited to four years from the effectively of the law, and not nine as proposed, as this is enough time to plan, retool and invest in activities leading to the local assembly of these vehicles.

The BOI also proposed that a cap be imposed on the volume of imports at 1,000 completely built-up units and that the privilege be limited to mass-market electric, hybrid and alternative fuel vehicles

So far, only Toyota Motor Philippines Corp. has braved the market and launched its hybrid here three years ago. The Toyota Prius, however, could set one back at a cool P2.2 million.

Assemblers would be exempt from payment of value-added tax and customs duty on the importation of parts and components and capital equipment used in the assembly of completely knocked-down electric, hybrid or alternative fuel vehicles, according to the bill.

They are also VAT-exempt on purchases of raw materials, parts and components and capital equipment that are locally sourced, as well as exempt from VAT and excise tax on sales of locally manufactured/assembled electric, hybrid or alternative fuel vehicles.

Parts manufacturers would also be exempt from VAT and customs duty on imported raw materials for making parts and capital equipment used in the assembly of these vehicles; from VAT on locally sourced raw materials, and from VAT on sales of parts and components and capital equipment.

These assemblers may also be registered with the BOI’s Investment Priorities Plan to get a maximum of eight years in income tax holiday.

As support for electric vehicles, the BOI is proposing the grant of incentives to operators of charging stations in the form of VAT and customs duty exemptions on imported parts and components for their projects for nine years.

To monitor their operations, BOI proposed the maintenance of a registry of manufacturers or assemblers and importers of electric, hybrid or alternative fuel vehicles that are entitled to the incentives.

Makaya Business Insight

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The Department of Trade and Industry (DTI) lauded Toyota Motor Philippines (TMP) for implementing a recall on the Prius. Toyota implemented a recall on the hybrid car due to faulty brakes.

“We are pleased that TMP has taken the initiative of contacting their customers and perform the required repair at no cost to customers,” Trade Secretary Peter B. Favila said.

DTI said that mistakes that occur in the manufacture of products pose danger to the health and safety of the consuming public. When similar incidents occur in different people when using a specific product, this could be an indication that there is a flaw in its production, and when this happens, a product recall may be necessary.

Recalls may be initiated by the manufacturer upon discovery of defect in its products, but RA 7394, otherwise known as the Consumer Act also have provisions aimed at protecting the safety of consumers from hazardous goods by providing for their retrieval in the market.

Meanwhile, TMP vice president Rommel Gutierrez said that they only sold about 23 units of the P2.25-million hybrid car. Gutierrez said they have already contacted all the owners who agreed to bring in their cars.

In the Prius models, some customers may feel a slight delay in brake reaction, when driving the vehicle over certain road condition while lightly applying the brakes, TMP said.

This is why TMP will be installing a modified ABS management program on Prius at no cost to the owners.

The local recall was instituted after Toyota recalled 223,068 hybrid gasoline-electric vehicles in Japan, including its latest Prius model and three others – the Sai, the Lexus HS250h and the Prius plug-in hybrid, and conducted a voluntary safety recall in the United States for about 133,000 2010 model-year Prius cars and 14,500 Lexus Division 2010 HS 250h cars to update software in the ABS.

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The Prius, the world’s best-selling hybrid car, finally goes on sale in the country today at major Toyota dealers nationwide.

The 1.8-liter third generation gasoline-electric hybrid can get up to 38 kilometers per liter and significantly cuts down on carbon emissions, meeting the strictest emission-reduction standards worldwide.

But going green in the Philippines doesn’t come cheap. The Prius has a price tag of P2.2 million, about half of it going to taxes – import duties, excise taxes, and value-added tax (VAT). This is more than double its price in Japan of $20,900.

“Toyota believes that a lot more customers would benefit if a special tax incentive will be given for the Prius to bring its cost down,” said Raymond Rodriguez, first vice president for vehicle sales operations of Toyota Motor Philippines Corp.

There are moves to provide incentives to environment-friendly vehicles.

House Bill 2084 authored by Ilocos Norte Rep. Ronald Singson, son of former Ilocos Norte governor and now deputy national security adviser Luis “Chavit” Singson, seeks to give importers and manufacturers of hybrid vehicles a break on duties and taxes. While the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and Toyota Philippines have made presentations before the House of Representatives’ ways and means committee chaired by Antique Rep. Exequiel Javier, the committee has yet to hold formal hearings on the bill.

Last April, the Japanese government implemented significant tax breaks for environment-friendly cars, both as a means to stimulate the economy and to encourage green technology.

As a result, data from the Japan Automobile Dealers’ Association showed that Toyota sold 10,915 units of the Prius in May, more than five times the number sold in the previous month.

Toyota dealers in Japan have reportedly placed orders for a total of 110,000 units of Prius for the year.

Hiroshi Ito, president of Toyota Philippines, said that by the end of last year, “combined Toyota and Lexus hybrid cumulative global sales reached 1.7 million units, 70 percent of which are Prius.”

The 1.7 million hybrid vehicles are estimated to have taken nine million tons of carbon dioxide from the atmosphere.

The first Prius went on sale in Japan in December 1997.

Alfred Ty, vice chairman of Toyota Philippines, earlier told The STAR that they started working on bringing the Prius to the Philippine market as early as three years ago.

But there were initial concerns about the adaptability of the hybrid to local conditions, specifically the bad roads and floods.

Rodriguez assured us that with the improvements incorporated into the third generation Prius, these concerns – as well as those related to temperature and humidity – have all been addressed and are no longer an issue.

Toyota Philippines is targeting sales of 100 units of Prius this year. While acknowledging that the Prius is a “specialty product targeting a very niche market,” Rodriguez nevertheless said that “is always a good time to introduce an eco-friendly product, especially now that there is greater awareness on environmental preservation.”

Reports from CAMPI show that there has been no drastic decline in the automotive market. As of May 2009, the market only registered negative growth of 4 percent compared to the same period last year.

The Prius, the global pioneer and standard for hybrid technology, allows the car to run solely on its gasoline-operated engine, its electric motor, or a combination of both. Its new shape allows for maximum aerodynamic efficiency, and the aluminum and high-tensile steel makes the car lighter, sleeker and more stylish.

Waiting for incentives

The hefty price tag of P2.25 million of the hybrid car Toyota Prius is expected to go down once the government grants fiscal incentive to the distributor, Ito said.

During the car’s launch Friday evening, Ito revealed that more than 30 percent of the cost of the car goes to the national government in the form of taxes.

Ito said that they are paying three kinds of tax to the government, the import tax, the excise tax and the value added tax.

The executive said that the auto industry has already requested for incentives from the government for this environmental friendly car but there is still no response from the Department of Trade and Industry (DTI).

“Once the incentive is introduced the price may go down,” he noted.

Likewise, Ito said that the Prius is not covered by the perks granted under the Japan-Philippines Economic Partnership Agreement (JPEPA) because it runs on 1.8 liters and not the 2.0 liters.

The launch came in spite of the slowdown in consumer demand which has affected the local automotive industry.

Even though hybrid cars are more expensive, Ito said they have been getting inquiries regarding hybrid vehicles. “There is a demand,” Ito said.

by Elisa Osorio, Philippine Star

Photo from Philippine Star

Tsikot.com Philippines

Toyota Motors Philippines is finally launching its hot-selling Prius hybrid in the Philippines next week, but the ecologically-correct car could carry a price tag of around P2.25 million.

“Toyota wants to be the first to locally introduce hybrid, environment-friendly cars as alternative vehicles,” said Raymond Rodriguez, Toyota Motor’s first vice president for vehicle sales.

The third-generation, 1.8-liter Prius would be imported completely built from Japan and subject to a 30-percent tariff in addition to the excise tax and 12-percent value-added tax, Rodriguez said in explaining the hybrid’s higher price.

By contrast, Toyota’s most expensive sedan available locally, the 3.5-liter V6 version, retails for P2.005 million.

According to industry sources, the local Toyota has been given an initial allocation of 25 units and another 10 units a month given the three to four months of waiting time for Japanese customers to drive home a new unit.

Targeting the mainstream market, the new model is more powerful than its predecessors, with more headroom, a bigger trunk and better gas mileage.

It is rated at 50 miles a gallon, according to US press reports, 10 miles better than its principal hybrid competition, the Honda Insight.

By Elaine Ramos Alanguilan, Manila Standard Today

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Toyota Motor Philippines Corp. (TMPC) said there would be no additional expansions this year instead the country’s biggest car company will be launching its eco-friendly Prius model, work on some initiatives to stop other car companies from further eating into its market share and new financing schemes for its volume models.

Saying they are technically ready, TMPC president Hiroshi Ito said they are launching Prius in the local market by middle of this year.

“We are technically ready now. We have completed all the technical adjustments,” Ito said but he refused to give any details of the launch. TMPC has already briefed its dealers about the coming of Prius into the local market.

With the forthcoming launch of Prius, Ito expects some kind of assistance that is “generous as possible” from the government to promote this environment-friendly vehicle.

Prius will be imported completely built up from Japan, the only source of Toyota’s hybrid car.

As far as 2007, TMP said it was doing “technical” adjustments for its hybrid car Prius to fit road conditions in the Philippines as well as other developing countries.

A number of Prius units were brought to the Philippines so they can be tested under local road and traffic situations.

Ito said then that while Prius will eventually be sold in the domestic market, it make take some time before the world-renowned and environment-friendly Prius could commercially ply Philippine roads.

“The problem is technical. As our responsibility as manufacturer, we want to make sure there is no problem [with the car] even with bad roads,” Ito said.

The Prius is powered by a combination of electric and conventional internal combustion engines. Either the engine or the battery or both can power the vehicle, depending on conditions. This feature gives the vehicle the acceleration and power of a standard automobile, which has a larger gasoline-burning engine.

On the other hand, Alfred Ty, TMPC vice-chairman, told reporters at the launch of Lexus RX350 that the company is looking at ways to protect its market share.

“Capital expenditure will not be substantial this year. This is not the right time to invest more because of the global financial crisis but we are looking at sustaining our operations,” Ty said.

But the company cannot just sit down and watch its market share being slowly diminished by the car models of other companies because they do not have a model in these specific categories.

“Seven years of triple crown, we cannot just sit on it,” Ty said. These moves, however, do not require additional capital expenditures saying this is not the right time to invest.

For this year, the company will be launching few model completely built up models.

Ty also acknowledged that the company’s absence in the smaller and more affordable cars have cost them a few points in its market share. TMPC’s market share in 2008 was down to 36.07 percent from 38.2 percent in 2007 as other small but more affordable cars of other car companies cornered this category.

“We will look and study at that, we are watching that closely because we cannot take that for granted,” Ty said.

“We are working on it,” he added.

While TMPC’s Vios and Innova are its bread and butter models and the number one brands in their categories still these could not fill the absence in the small car category in terms.

Dexter Pasion, president of Toyota Financial Services Philippines Corp., also said that the company is coming out with financing schemes for its volume brands such as Innova, Vios and Altis.

The company is launching its lease-finance or lease to own scheme where the vehicle is registered under Toyota and not under the name of the buyer. Under this scheme, the buyer is free from paying the chattel mortgage fees which could amount between P18,000 to P20,000 excluding interest.

This promo is good for 30 days only exclusive only for the Toyota group.

TMPC is also maintaining its low down payment schemes of 10 percent and 72 months payment period as against the standard financing schemes of banks of 20 percent down payment and 48 months to pay.

by Bernie Cachiles-Magkilat, Manila Bulletin

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With gas prices hitting the roof, threatening to hit P60 per liter, along with it the skyrocketing prices of basic goods, Congressman Ronald Singson, Ilocos Sur’s first district representative, formulates a bill aiming to lessen the sting of escalating gas prices.

House Bill No. 2084 seeks to grant tax incentives to importers and manufacturers of hybrid cars in the Philippines. These cars that operate on hybrid technology are propelled by both gasoline and electricity.

Carbon dioxide is one of the major problems that cause global warming. With the hybrid technology of the Prius that reaps high mileage and low gas consumption, less carbon dioxide is emitted. Toyota’s hybrid technology saves fuel by storing energy and adjusting intelligently to each situation.

The battery within a hybrid car stores energy that would usually be disposed by the conventional vehicle as heat. As the hybrid’s motor acts as a generator, it converts the stored energy into electricity used upon ignition and to supplement the engine when it accelerates. This cycle of conversion is at its peak when the hybrid vehicle is in full stop therefore, the more the vehicle breaks, the more it regenerates and produces energy.

The alternative option of using hybrid vehicles would be beneficial to the Filipino driver by saving gas money and by being environmental friendly. However, the tariff imposed on parts and components makes the hybrid vehicle too expensive and less feasible for the market. Cong. Singson’s response to this is to try to lessen taxes through House Bill 2084.

This covers exemption from import duties, customs and tariff duties; excise value-added and ad valorem taxes. Passing the bill would significantly lower the price of the price of hybrid cars.

House Bill 2084 has already been referred to the Committee on Ways and Means. Aside from Cong. Singson, other members of the committee, Rep. Eleandro Jesus Madrona Romblon and Rep. Amado S. Bagatsing of Manila’s 5th district were able to test drive the Prius. The bill’s co-author, Jose Ma.III Zubiri, got a chance to drive the car and was amazed at its fuel efficiency.

With the inflation of fuel prices and the environmental crisis, Cong. Singson believes that the Prius’ hybrid technology will be an instrument to alleviate the situation.

Toyota Philippines Media Source

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