Honda sees new HR-V driving sales growth

Honda Cars Philippines Inc. (HCPI) aims to sell more than 1,500 units of the new HR-V this year as it expects the sports utility vehicle (SUV) lineup to help drive sales volume for the company.

“With this new HR-V, we are targeting to surpass previous accomplishment of our sales target of HR-V. Average is 1,500 units. We are looking to surpass that this year,” Louie Soriano, division head for sales and spokesperson at HCPI, said in an interview during the launch of the new SUV.

Manufactured in Thailand, the new HR-V comes in two variants and is targeted for young professionals looking for a spacious vehicle which could be used for sporty and other outdoor activities.

The 1.8 RS Navi CVT, which offers a sportier and stylish character, has a suggested retail price of P1.495 million, while the 1.8 E CVT costs P1.295 million.

Amid a challenging environment for the Philippine automotive industry due to the imposition of higher excise taxes by the government, as well as the weakening of the peso against the dollar, HCPI is hopeful the HR-V and other SUV offerings would help drive sales this year.

“This year has been a very challenging situation for the whole Philippine automotive industry as overall market conditions continue to perform lower than previous year. As for Honda, we are confident the growth driver of Honda will come from our powerhouse SUV lineup namely BR-V, CR-V and HR-V which continue to give growth result contributing to overall sales performance,”

HCPI president and general manager Noriyuki Takakura said.

As of the first-half, Takakura said the company’s SUV sales reached more than 5,000 units, nine percent higher year-onyear.

While SUV sales were higher year-on-year, overall sales are down from last year.

In particular, HCPI’s total sales for the January to July period declined by about 12 percent year-on-year to 13,768 units this year as the higher excise taxes slapped on vehicles affected demand for cars.

The move to increase prices last July due to the impact of the weakening of the local currency against the greenback to HCPI’s operations likewise had an effect on vehicle demand.

Still, Soriano said the company remains optimistic given its new offering and as it expects the market to be able to adjust to the changes.

Last year, HCPI’s total vehicle sales hit a record high of 31,758 units, 37 percent more than the 23,199 units sold in 2016 and higher than the 18 percent industry growth reported by the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association Inc.

“We are optimistic... As long as we can perform better than the industry, it would be okay for Honda,” Soriano said.