Prices of Japanese cars to remain stable

Prices of cars imported from Japan are expected to remain stable despite Japanese firms’ plans to raise wages.

Toyota Motor Corp. is among the companies planning to raise the base pay following the Japanese government’s call for higher wages in a bid to stop deflation and promote growth.

While the Japanese carmaker is giving higher pay to its employees, price hikes for Toyota vehicles made in Japan sold here are unlikely, a top official said.

“The retail sales price of vehicles should be determined by the market and therefore, our cost is not necessarily a sole decisive factor of the retail sales price,” Toyota Motor Philippines Corp. president Michinobu Sugata said in an email message.

For his part, Mitsubishi Motors Philippines Corp. president and chief executive officer Yoshiaki Kato said in an interview the wage hikes in Japan will not affect vehicles being sold here.

“I think there is no impact. If ever, it is very minor,” he said, citing that wages are not the only factors taken into account in pricing.

Isuzu Philippines Corp. marketing head Joseph Bautista said Isuzu vehicle’ prices are also expected to remain the same.

“So far it (wage hike in Japan) has not affected prices. The major source of vehicles in the Philippines now is Thailand,” he said.

The bulk of cars being sold in the Philippines are accounted for by completelybuilt units or imports.

Of the total 269,058 vehicles sold in the country last year, imported units accounted for around 70 percent, while the balance of 30 percent was taken by locally assembled units.

In line with the government’s push for the resurgence of the manufacturing sector, the Department of Trade and Industry is crafting the Comprehensive Automotive Resurgence Strategy (CARS) which will outline measures to position the country as a regional automotive manufacturing hub and achieve higher local production of vehicles.

Under CARS, the government is looking to extend fiscal and non-fiscal support amounting to $600 million from its national budget to industry players that will meet certain production levels and export.

The government is promoting the growth of the manufacturing sector to create jobs and achieve inclusive growth.