Jump starting 2019

After the full acceleration of 2017 and the hard braking of 2018, the Philippine auto industry is treating 2019, with hope and a prayer, as a solid recovery year. The first half of the year saw the companies comprising the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) eke out a 1.5% increase from the previous year.

Optimism was in the air as automotive events at the start of 2019, laid out the roadwork for a solid sales performance. The first salvo of the year was the relaunch of Kia under the Ayala Corporation banner. The Korean brand’s relaunch saw the unboxing of the Soluto subcompact sedan along with the stalwarts of the Kia brand such as the Grand Carnival MPV and the Sportage SUV. Kia’s sister brand Hyundai is actually a fierce rival where Philippine sales are concerned, and the big H promptly unveiled the Reyna subcompact sedan as a countermove.

Even with the recharged Kia brand and new model introductions, January sales was down 25% for the imported cars, and 15% for CAMPI and TMA. Car launches continued to pump prime the market. These included the introduction of the all-new Suzuki Ertiga, a timely update to the company’s best-selling seven-seater compact MPV. Mitsubishi’s new Strada, with a heavily facelifted nose now in line with the Xpander’s Dynamic Shield styling, debuted with improved suspension and all-new 6-speed automatic. The three-diamond brand also marked an important milestone: surpassing the 1 million unit sales mark in the Philippines.

Meanwhile, another Japanese brand and one that’s already in an alliance with Mitsubishi-Nissan-marked its return to the top 3 in March 2019. From March 2010, the Top 3 have been consistently recorded as (from number one): Toyota Motor Philippines, Mitsubishi Motors Philippines, and Hyundai Asia Resources. Nissan bucked the downward trend of the Philippine auto industry in 2018. It continued to open new dealerships like the one on Sumulong Highway in Cainta, near the triple frontier (or borders) of Cainta, Marikina and Antipolo.

Another brand that has been quite visible in 2019 is MG. MG’s lineup consists of the RX5 compact SUV, the MG 6 sedan and what will probably be its bread-and-butter (or rice-and-tofu) the ZS SUV. The British-by-way-of-China brand opened 10 dealerships in the first semester, with five more nearing completion. MG also launched its Mobile Garage service caravan for home service of units, a servicing app for smartphones, and a series of concerts dubbed MG Live.

The biggest MG Live event was at the Manila International Auto Show (MIAS), where ex-Eraserheads members performed as Ultra Combo. MIAS continued to be a successful draw for car buyers and enthusiasts. Subaru and Russ Swift continued to amaze the crowds with Swift’s precision driving. A multitude of unveilings was held at MIAS, including the Chevrolet Camaro (sharing the stage with the Corvette Stingray), Ford Ranger Raptor, Jeep Wrangler, Kia Stinger, and the Hyundai Palisade, and Kona Electric. The Ranger Rover Evoque also made its virtual debut, with the in-the-metal event taking place in June. Chinese brand GAC had a star-studded stage along with its stable of new cars. Nissan showcased its Intelligent Mobility suite of active driver assistance features in a unique and well-conceived booth at MIAS.

Nissan marked its entry into the Formula E single-seat electric-car racing series, which is increasing in popularity among spectators and manufacturers alike. It was the first Japanese manufacturer to enter Formula E. Nissan promised to launch the all-electric Leaf hatchback to the Philippine market in 2020.

Erstwhile Top 3 firm Honda Cars Philippines continued to build on its strengths with no less than three launches in the first half of 2019. The all-new Brio hatchback debuted, and so did the refreshed bestsellers Honda Civic sedan and BR-V SUV.

Audi Philippines pulled off a feat by leading the premium and luxury segment, followed by BMW and Mercedes-Benz. Lexus followed in fourth place. BMW introduced the new X5, while Lexus launched the refreshed RC F Coupe. The all-new version of Subaru’s most popular model, the Forester SUV, clawed its way into showrooms. Subaru announced its warranty coverage for new cars (excluding STI models) has been improved to five years or up to 100,000 km, beginning with July 2019 bookings.

The Autohub group had quite a surprise visitor for the Philippine media and car collectors: no less than supercar maestro Horacio Pagani. The Pagani supercars, all made to order, are in the “if you have to ask, you can’t afford it” category, and now they’re officially available in Manila. Autohub was also behind the launch of the new Cullinan, the, er, Rolls Royce of SUVs. The stratospheric heights of exotic car prices reached a new high with Bugatti’s one-off La Voiture Noire supercar, which sold for nearly $19 million, a record for a new car.

Back on earth, on the dealership front, Foton expanded its network with the opening of dealerships in Palawan and Bacoor, Cavite. The Korean Ssangyong and Chinese Changan brands were relaunched under the umbrella of Auto Asia, under the Berjaya group. Berjaya Auto’s biggest brand in the Philippines, Mazda, saw the launch of the all-new Mazda3. On the commercial vehicle front, the Philippine Utility Vehicle or modern jeepney program, continued to move slowly but surely. Hyundai, Isuzu, and Foton all turned over new PUV units for use by the commuting public. Isuzu likewise rolled out the Boondock edition of its venerable D-Max pickup.

In June, Ayala group also launched the Maxus brand. The Maxus V80 van (up to 18 passengers) and G10 MPV (a 9 seater) are powered by diesel engines and offered at attractive pricing.

The 800-ton gorilla of the Philippine auto industry, Toyota Motor Philippines, was certainly not quiet in 2019. The top six nameplates in 2018 were all Toyotas and the trend is set to continue this year. One Toyota model alone, the Vios sedan, accounted for nearly 25% of all passenger car sales in the first five months of 2019, no doubt aided by a desperate Alphard buyer or two. The Vios was also present on track for a new season of the Vios Racing Festival. The all-new Hiace was launched, with a larger cabin, a relocated engine, and beefed-up engines and transmissions. This was, a world debut, appropriately, as the Philippines is one of the biggest markets for the Hiace. The strikingly angular RAV4 also made its debut, as did Toyota’s new sports car, the GR (Gazoo Racing) Supra, a joint development with BMW.

With the moderate sales increase in the first half of the year, it’s too optimistic to say: “Where we’re going, we don’t need roads,” or the Philippines’ version: “We can make it from Cubao to Makati in five minutes,” but 2019 is off to a steady start.