Toyota Philippines to roll out new model to perk up sales amid slow demand
TOYOTA Motor Philippines, ( TMP) Corp. plans to roll out at least one more model within the year in an attempt to perk up sales as higher excise taxes continue to dampen domestic demand.
“With our new model Vios, we’re trying to catch up to reach the same [ sales] level of last year. But still, we have to maybe accept, I think around closer to 10% down (in sales) for this year. But we’re trying to minimize that,” TMP President Satoru Suzuki told reporters, Wednesday night, during the company’s celebration of its 30th anniversary held in Taguig City.
TMP launched its fourth-generation Vios last July 20.
Mr. Suzuki said TMP’s total sales are expected to drop “near to 10%” this year. In the first half, TMP’s sales have already dropped 15% year-on-year.
Asked if another model will be launched after the Vios, Mr. Suzuki replied in the positive, saying there will be “at least one more” type to be introduced before the end of the year.
TMP slashed this year’s vehicle output by nearly 17% to 50,000 units from 2017’s record high 60,000 units, factoring in the effects of the higher excise taxes and soaring inflation.
“We expected first half maybe (there will be a) slowdown because of such negative reaction... But maybe latter half we expected market to catch up to the growing trend. But it still did not happen and continued to negative growth compared to last year,” Mr. Suzuki said.
He said rising inflation has compelled consumers to spend “a lot of money on the other very fundamental goods and services.”
“They cannot afford to buy a car at this moment. Some postpone or give up... Our market now, I think, I can say, is very bad,” Mr. Suzuki added.
However, this is expected to be temporary as consumers will see higher salaries that will encourage them to buy cars.
“The economy is growing so when businesses grow, there’s demand for vehicles for business use so that in itself is natural demand in a growing country, in a country with a young population... As you know cars is one of the first things they would like to own. That in itself is something to look forward to,” Alfred V. Ty, TMP vice chairman, said.
Mr. Ty noted the domestic demand for vehicles is still far from reaching its maximum point and is still lagging behind some ASEAN countries.
“Were only at $ 3,000 GDP ( gross domestic product) so we’re just starting. You cannot say we have reached the peak [of motor demand] because our demand is only half of Indonesia and then Thailand is ahead of us by 30%. Vietnam is below us but growing fast. They’re following the trend of the Philippines in terms of growth,” he added.
TMP Senior Vice President for Marketin, Jose Maria Atienza said the firm is targeting to expand its dealership network to 70 this year. As of end-July, TMP has 67 dealers.
TMP is a joint venture between Tyled conglomerate GT Capital Holdings, Inc. and Japan’s Toyota Motor Corp. —