2014 signals major changes in auto industry

THE SONATA unveiled at the SM MOA with Olympian Michael Martinez delivering a special performance. With him are HARI executives (from right) Conrad Marty, Edward Go, Fe Agudo and Richard Lee.

From January to November 2014, the Philippine automotive industry sold 213,427 units, reflecting a 30-percent surge over the same period in 2013. This figure covers total sales made by members of Campi (Chamber of Automotive Manufacturers of the Philippines, Inc.) and the Truck Manufacturers Association but does not include the sales of AVID (Association of Vehicle Importers and Distributors), which has yet to be released. Combined Campi and Avid sales for the entire year could breach the industry’s bullish 250,000 forecast.

The uptick in sales has resulted in major changes in the auto industry in terms of total year-to-date ranking. It also presages a fierce battle for market share in 2015 among the top five brands with the obvious exception of market leader Toyota.

Toyota Motor Philippines (TMP) is above the fray because it is way ahead of all the industry players. TMP posted January to November year-to-date (YTD) total sales of 96,787 units, a 41-percent leap over the 68,611 units sold in the same period last year that fortified TMP’s leadership with a 45.5-percent chunk in total vehicle sales.

Speaking at the Christmas lunch for media earlier this month, TMP president Michinobu Sugata confidently predicted that “even before the year ends, we expect to break the 100,000 sales mark for the first time in history … setting a new standard in the automotive industry.”

VIOS. TMP’s best-selling model, the Vios subcompact sedan, is also the best-selling car in the country, and has held this crown for many years now. The all-new Vios that was launched in 2013 scored YTD sales of 23,725 units this year-aided, no doubt, by the successful staging of the first season of the Vios Cup.

TMP’s One Make Race, starring a Vios that had been prepped by the TRD (Toyota Racing Development), not only rejuvenated motorsport in the Philippines but also bestowed a sporty new aura on the heretofore bland image of the Vios.

In November alone, TMP sold a total of 9,993 vehicles consisting of 4,062 passenger cars (PCs) and 5,931 light commercial vehicles (LCVs).

TMP launched four all-new or revamped models this year, three of which retained or grabbed pole position in their respective segments: the full model change Corolla Altis, No. 1 in the compact car segment with YTD sales of 5,246 units; the all-new mini-compact Wigo, overtaking former segment leader Mitsubishi Mirage with YTD sales of 8,322 units; and the facelifted Innova, ranked No. 1 in the midsize Asian utility vehicle (AUV) segment with 14,479 units sold so far.

MITSUBISHI. Mitsubishi Motors Philippines Corp. (MMPC) improved its market share to 21.4 percent with 45,760 units sold as of end-November, thereby retaining second place in total vehicle sales and marking a 17.8 percent jump over last year’s YTD sales of 38,854 units.

LCVs dominated Mitsubishi’s YTD sales with 32,560 units, up 10.9 percent from 2013, followed by PCs with 12,003, up 37.0 percent from 2013. Sales of trucks and buses soared 65.8 percent to 1,197 units from 722 in the same period last year.

In November this year, Mitsubishi sold 4,109 vehicles, 3,118 of which were LCVs. MMPC aims to attain its 50,000 sales target before the year ends, banking on its best-selling midsize sport utility vehicle (SUV), the Montero Sport, which outsold the Toyota Fortuner for a long time but is now being challenged by the Chevrolet Trailblazer.

The Mirage hatchback/G4 sedan is another popular MMPC product, but it lost its No. 1 position in the mini-compact segment to the Toyota Wigo last July.

SUGATA (second from left) at the Vios Cup awards ceremony. With him are (from right, Luis Gono) Cosco Oben and Jun Santos.

The Strada will reappear with a full model change next year. After MMPC moves next year to its new facility, the former Ford assembly plant in Laguna, it is expected to come up with new models or nameplates.

HYUNDAI. Despite supply shortages and a dearth of new models except for the Grand Sta. Fe, Hyundai Asia Resources Inc. (HARI) managed to keep third place with YTD total sales of 19,617 units, up 9 percent over the year-ago period. In November, however, Hyundai sold only 1,730 vehicles, a tepid growth of 1 percent over the 1,712 units sold in the same month last year.

Hyundai’s PCs outperformed its LCVs with 14,962 units sold YTD, scoring a 23 percent increase over the 12,174 units sold in the year-ago period. The best-selling Hyundai PCs are the subcompact Accent and mini-compacts Eon and i10.

Total LCV sales of Hyundai YTD declined 13 percent to 6,443 units from 7,443 sold in the same period last year. While Hyundai’s passenger van, the Starex, gained in YTD sales to 2,463 units from 2,265 last year, its other LCVs (compact SUV, midsize SUV and utility trucks) lost market share to rivals.

Nevertheless, Hyundai plans to bounce back in 2015 with a raft of all-new models including the redesigned Sonata executive sedan that was revealed this month.

FORD. The competitor nipping at the heels of Hyundai is Ford Motor Co. Philippines which posted total YTD sales of 18,438 units to claim fourth place with an 8.6 percent market share.

Ford is only 1,179 units short of catching up with Hyundai, and if it continues at its rapid pace-such as the 1,924 units sold this November for a 62 percent year-over-year increase, Ford may dislodge Hyundai from third place before the year ends.

Ford’s YTD sales of 18,438 units marks a 53 percent increase over last year’s January to November period. Its best seller—the Ranger, voted Pickup Truck of the Year 2013 and 2014, and which is offered in 13 variants—sold 746 units this November for a 68 percent increase over November 2013.

In January, Ford introduced an all-new subcompact SUV, the EcoSport, and more recently, the full model change 2015 Escape and upgraded Explorer Sport. So far, 4,666 units of the EcoSport have been sold, 681 of these in November.

The Everest SUV, which is scheduled for a full model change next year, reached YTD sales of 2,980 units, a 17-percent growth over the year-ago period.

What makes Ford cars appealing, especially to the wired younger generation, is its Sync infotainment system, Voice Activation Technology, Active Park Assist and fuel-efficient EcoBoost engines. At the moment, Ford appears to be ahead when it comes to connectivity and green engine innovation.

ISUZU. Another newcomer to the top five circle this year is Isuzu Philippines Corp. (IPC), which displaced Honda Cars Philippines, Inc. (HCPI) from fifth place. IPC sold 12,644 units YTD, 17.6 percent up from 10,479 units in the year-ago period for a 5.9 percent market share.

IPC is targeting 18,000 sales in 2015, with at least 6,000 units of the all-new, made-in-Thailand mu-X SUV projected to be sold.

Since its launch last September, IPC has sold 1,200 units of the mu-X with customers waiting for three or four months for delivery. Isuzu’s other offerings, the D-Max pickup truck and Crosswind AUV, will continue to contribute to IPC’s optimistic forecast for 2015.

HONDA. HCPI is not far behind Isuzu with 12,000 Honda vehicles sold YTD following the intro of an updated Jazz subcompact and new nameplates, the Brio and Amaze. HCPI president Toshio Kuwahara expects overall sales to reach 13,500 units this year, slightly higher than the 13,356 sold in 2013.

FORD PH managing director Kay Hart (left) and AVP for marketing Prudz Castillo lead the launch of the Mustang 50 years Limited Edition.

Like Hyundai, HCPI is disadvantaged by the lack of a pickup truck and truck-based seven-seater SUV in its lineup. The SUVs of Hyundai and Honda are car-based crossovers with minimal offroad capabilities.

With oil prices falling almost every week, consumers are looking at bigger wheels once again. So competition in the SUV and pickup segments is expected to intensify in 2015 among Mitsubishi, Ford and Nissan with the intro of the full model change Ford Everest, Ford Expedition, Mitsubishi Strada and Nissan Navara.

Now the suspense begins: Will an American brand (Ford) be able to dislodge a Korean brand (Hyundai) from third place? Ever since Hyundai overtook Honda for third place in 2010, no Japanese brand has reclaimed that position. Incidentally, neither Hyundai nor Ford are CAMPI members. Bottom line, total sales figures of the current five leading brands for the entire 2014 may offer us a preview of the 2015 car market.

Bottom line, total sales figures of the current five leading brands for the entire 2014 may offer us a preview of the 2015 car market.