Car prices may be lowered in 2010 bec of JPEPA

[tidus1203]

And of course the Prius might go to Camry 2.4 levels which now make it more acceptable...

[[archie]]

Hmmm, JDM Nissan Skyline GTR at 30% off anyone?

ill take it... if i had the money. hehe

[Walter]

The way I see it, the manufacturers will most likely add features instead of lowering prices so as not to disrupt the market. But Lexus might lower their prices considerably to gain market share from MB and BMW.

[ghosthunter]

And of course the Prius might go to Camry 2.4 levels which now make it more acceptable...

A P2.2M Prius would go down to P1.5M.

A Camry 2.4L costing P1.45M will now cost only P1M (or corolla altis money).
Add an Auto-LPG kit, it will still be a better choice than a Prius.

[istan]

I would think they would just add more options to avoid lowering the price too much, or car companies would just pocket the windfall profits.
Btw, Lancer Ex = thailand na di ba? Since they opened a plant there to build it.
Camry is also thai...I think.
Dito naman sa atin, there's no such thing as lowering prices sa cars. Puro nga price increase tayo, kahit na walang dinagdag sa value ng cars. Come to think of it, vehicles are depreciating assets. Nag appreciate lng sya, pag nakatenga sa Casa pa. hahaha!
Nag drop lng naman ang price ng cars dito, pag may lalabas na bago, or di pa talaga sya na update since panahon ni makoy. :D
Lancer old body, Nissan, Mazda 3 comes to mind.

[rusem]

I did some research regarding jpepa and it seems tariff rates on vehicles with engines displacement of 3 liters and above will go down from the present 30% to 0% effective 2010. Tariff rates for vehicles with less than 3 liter engine displacement will go down from 20% to 0%

But it also states that the Philippine government can re-negotiate to defer 0% tariff for vehicles with 3 liter or more engine displacement.

If the Philippine government does not re-negotiate, it seems there will be a reduction on car prices.

This applies to vehicles originating from Japan.

im not sure if this applies only to vehicles coming from japan. from what i know lahat ng imported cars will be 0% tariff. this will be good for consumers but might kill the local automotive industry. these plants in thailand are very efficient. producing units at around 5k per day compared to our local plants. One of our local plant produces a mere 45 - 50 units per day. also in thailand production cost per unit is way cheaper due to utilities (power, water, fuel). Philippines has one of the higher cost when comes to power. from what i know di competitive ang price ng local manufacturer's natin sa imported kung cost per unit lang ang paguusapan. tapos 0% rated pa tariff ngayon.

[br733]

if this will be applied to all car imports, even better then :-)

just to correct myself, the tariff reduction for 2009 is not from 29% to 20%, but i think 23% to 20% only (for less than 3 liter engine displacement).

[br733]

From Philippine Automotive Industry Portal:

RP to Seek Delay in JPEPA Auto Component PDF Print E-mail
by: Irma Isip

The Philippines will move for a delay in the duty-free entry of vehicles and parts from Japan under the Japan-Philippines Economic Partnership Agreement.

Elmer C. Hernandez, Trade Undersecretary and Board of Investment managing head, said the local industry is seeking the deferment to 2013 of the liberalization in the trade of completely built-up (CBU) units as well as automotive parts.Tariffs on these products are schedule to drop to zero by 2010.

Hernandez said both parts and assembly sectors want to use the three-year window provided under the JPEPA to delay free trade and have expressed this in separate communication to the BOI. Hernandez said Japan has been informed of the wish to negotiate but the parameters are yet to be set. Under the JPEPA, the negotiation should start this year. Executive Order 262 signed in December 2003 contains a list of dozens of parts and components, mostly for use of the domestic assembly industry, whose tariff rates at 10, 20 to 30 percent as protection to local producers. “The industry position is to delay everything,” Hernandez said.

The agreement provides that parts and component listed in EO262should be duty free by 2010. However, the Philippines can delay elimination of tariffs if negotiated in 2009. Tariff elimination should be not later than 2013, Hernandez said under the agreement the Philippines should inform Japan of any plan to amend EO 262. Japan should also be able to participate in the public hearings.

Hernandez said BOI is now conducting consultations with players in preparation for negotiations. Hernandez said a parallel move is in the offing for CBUs.

Hernandez said the Philippines has informed Japan of its plan to delay tariff elimination on CBUs with engine displacement of 3-liters and above. Just like with locally produced parts, JPEPA provides the Philippines a three-year window to remove tariffs but that the country should formally initiate intention to delay.

For vehicles with engine sizes that are below 3 liters, Hernandez said the Philippines did not commit anything in JPEPA. “There is no date for tariff elimination but should there be any move to eliminate the tariffs, it’s up to us,” Hernandez said.

[fourtheboys96]

A P2.2M Prius would go down to P1.5M.

A Camry 2.4L costing P1.45M will now cost only P1M (or corolla altis money).
Add an Auto-LPG kit, it will still be a better choice than a Prius.

i need an explanation on that.

[niky]

i need an explanation on that.

Simple math. 1m + 50k pesos, and you have a luxury car plus 450k pesos worth of LPG (about 15,000 liters at an average price of 30 pesos over the next five years... anticipating a rise in prices)... which gives you a Camry and 105,000 kilometers worth of gas in mixed driving at 7 km/l.

1.5 million pesos for a Prius... then you will need another 236k pesos (at 45 pesos per liter over the next five years... also anticipating a rise in prices) to go that 105,000 kilometers at 20 km/l.

Of course, that extra 236k pesos will get you another 7875 liters of LPG, which will last you another 55k kilometers.

It's only as you approach 200,000 kilometers that you actually break even with the Prius... and by then you've spent over 2 million pesos to drive that far. And in the meantime, you're putting up with a car that is more plasticky, less comfortable and less luxurious than the Camry.

Or... contrawise... you could buy a diesel Crosswind at 800k pesos and run it for over 200,000 kilometers for the same price as a Prius.

Oh... this is a Prius without taxes... and a base version, at that. At its current price, you'll have to drive nearly a half-million kilometers to break even versus a basic diesel subcompact.