Industry heads suggest what we will buy this 2014

INDUSTRY experts believe that the MPVs are fast becoming a class of their own.

In January this year, Inquirer Motoring asked auto industry heads what Pinoys will be buying this year. Their answers reveal the buyer’s mindset that hinges on price, versatility and utility.

1. Fuel-efficient, budget-friendly cars

The country’s healthy demographics, with an emerging middle class and the “Generation Y” market, has changed the game in the automotive industry, rallying carmakers to provide innovative products at competitive prices. This was cited by Fe Perez-Agudo, Association of Vehicle Importers and Distributors chair and president and Hyundai Asia Resources Inc. CEO and president.

“When buying a car, consumers today seek more value than just basic functionality. The growing value-laden consumers have spurred growth for the A and B segments—where fuel efficiency, upgraded designs and budget-friendly prices attract a huge market base,” Agudo said.

She added: “Expect this trend to continue in the long term as new employment opportunities open and, with these, better income prospects.”

2. Small sedans

“In the 1990s, compact sedans were the norm. But with the purchasing power not growing as fast as the prices of cars had gone up, there is now a shift to smaller subcompact sedans as well as small hatchbacks. Today, these are the biggest and fastest-growing segments of the Philippine market,” said veteran auto industry expert Arnel Doria, who is also Automobile Central Enterprise’s (ACE) head of sales and marketing. ACE is German Volkswagen’s Philippine distributor.

3. Commercial vehicles

Industry veteran and lawyer Albert Arcilla, The Covenant Car Company Inc. (TCCCI) president and managing director, sees a clear market preference for commercial vehicles.

“The CV segment has grown to comprise almost 70 percent of the total industry sales volume, and we expect this to remain or even grow with the emerging lifestyle preferences of buyers and the changing climate patterns where we experience an unexpected rainfall volume that extensively affects our road conditions,” he said.

TCCCI is Chevrolet’s exclusive distributor in the Philippines.

4. Bigger SUVs from common platforms

“Bigger sport utility vehicles developed from common platform programs are outselling the small SUVs because of competitive pricing achieved through the use of common parts or parts-sharing,” Doria observed.

5. MPVs become a class of their own

Doria explained: “In the old days, multipurpose vehicles were just the normal no-frills Asian utility vehicle workhorses. But with the improvement in designs and features, they have become the accepted MPVs of everyone. Some models are even threatening the existence of jeepneys, with the proliferation of the MPV-based UV Express Service.”

He observed that in upscale houses, it is now common to see a sedan, an SUV and an MPV in the garage.