THE YEAR 2015 is shaping up to be another banner year for the Philippine automotive industry, with more cars being released, from all segments and niches of the industry. So what’s driving this growth? Industry experts cite a few crucial reasons. The Philippine’s annual per capita income is pushing $3,000, which has been a tipping point in every other country that has undergone massive motorization. Despite a lot of political mud-slinging and uncertainty, the economy has posted steady growth. Foreign direct investments are up, and rumors of many industrial powerhouses planning to move back to the Philippines from other Asean countries has been promising.
Another factor is the low interest rates for car loans, plus innovative buying schemes to ease cash flow burdens on first-time car buyers, allowing people who could barely afford a new car now well and able to buy entry-level vehicles.
And let’s not forget that the automotive industry has been launching new, innovative products that are more sophisticated, more technologically advanced and safer, not to mention more environment-friendly. We take a quick look at the new cars coming soon.
Pickup segment
Nissan’s Navara, Mitsubishi’s Strada, a revitalized Ford Ranger, and Toyota’s recently unveiled Hilux, all unveiled this 2015, are the main cast members in the hotly contested pickup segment.
Consumer attitudes over pickups have changed. The pickup has shed its workhorse, agricultural, simple and no-frills image to become a true lifestyle choice particularly for entrepreneurs, people who love travel and the outdoors, and even for aftermarket enthusiasts.
With heavy flooding brought about by monsoon rains as well as super typhoons becoming a regularity in our country, raised ride heights with four-wheel -drive abilities are now a must.
These new pickups join the fray of existing models such as Isuzu’s D-Max and Ford’s clone, the Mazda BT-50, which is also scheduled to get a major rework sometime next year.
But the great thing about the pickup segment is that comfort, refinement and on-road driving performance have been improving significantly over the years, blurring the lines between unibody sedan chassis, to crossover-based chassis, to the traditional ladder-frame based, body-on-frame chassis.
Things can only get better for consumers in this segment.
The big question particularly for Mitsubishi’s all-new Strada is that will it get the new-generation 4N15 engineand the Montero Sport’s rumored eight-speed transmission?
AN interesting release is the Chevrolet Colorado Tracker variant, a special edition model that has been modified with aftermarket accessories to help improve its off-road prowess. A lifted suspension, a 12,000-ound rated winch, and a snorkel means it will bravely traverse river crossings well past 800 mm, possibly into the 1,000 mm range with ease. Pickups/4×4/offroading is becoming more popular, and the Colorado, being modified with the right sort of equipment, makes it even more popular for offroading enthusiasts.
Diesel SUV (pickup-based)
If 2015 is the year of the pickup, 2016 will be the year of the diesel, pickup-based SUVs.
Three major launches are expected next year. Globally, the all-new Toyota Fortuner and all-new Montero Sport have been unveiled, and Nissan’s Navara-based SUV has already been spied testing in Thailand.
But Ford’s all-new Everest will get the jump on these three as it has already been launched locally, with deliveries expected to begin in September.
Can the likes of Kia’s recently unveiled Sorento and Hyundai’s Santa Fe stay on point against these four SUVs? Note that the Koreans possess a cross-over sedan-based platform which trades absolute off-road ability for more car-like refinement particularly at higher speeds. For some buyers, the Koreans will have all the 4WD-ness they will ever need, while others still prefer the macho ruggedness of the pick-up ladder-frame based SUVs.
But just like the pickups, refinement, comfort and space have been improving on these traditional SUVs, and with more luxury car equipment being fitted as standard.
Mitsubishi will debut an eight-speed transmission, while Toyota’s new line of GD-FTV engines are smaller in displacement, but deliver Euro 4 (or better) emission capability while providing more power and torque as well as improved fuel efficiency.
Foton, the China-based auto manufacturer, will be launching their own SUV called the Toplander based on the Thunder pickup later this September. It will be interesting if the Toplander can sway some buyers away form the traditional stalwarts in this segment.
These SUVs are also receiving electronic aids such as hill descent/ascent control and traction-ability control, as well as ABS-EBD brakes and 6-7 airbags, a huge leap for safety, convenience and overall performance on and off the road.
Sub-compact, compact and executive sedans
The traditional compact and executive sedan car segment has been dwindling in sales over the last decade simply because more buyers prefer a bigger vehicle that has a raised ride height with diesel engines that are cheaper to run due to the 20 percent price difference of diesel over petrol/gasoline fuels.
But there’s still a demand nonetheless, which has pushed this segment to introduce more innovative, value-packed, and technologically advanced vehicles.
In the sub-compact segment, Kia leads the charge with a revitalized Picanto and Rio, while Volkswagen has its new Polo, a smart alternative priced right up against the traditional Japanese sub-compacts.
But 2015’s biggest star in this segment is Mazda’s all-new 2, which is arguably the best-looking and most dynamically endowed performer.
In the compact segment, Volkswagen has its all-new MK7 Golf GTi leading the charge, an old favorite with a legacy of over 40 years old abroad. While the high-performance GTi variant is first to land, Volkswagen Philippines promises more mass-market appealing variants in the future.
While still unconfirmed, the Golf GTi will be joined by another GTi variant, this time of French origin: the 308 GTi.
Our source officially does not want to even talk about the 308, but from the grapevine, it is already in the works. Expect it to break cover by the first half of 2016.
How will the Subaru WRX and STI fare against these more luxurious European rivals? The Europeans offer better everyday useability coupled with the added cache of being a rarer, European built vehicle, offset by lower absolute dynamic performance against Subaru’s rally replicas.
Another Kia has pulled a coup by having three major body-styles available in the compact segment: coupe, sedan and estate (or station wagon). This is KIA’s handsome and stylish Forte, which is now available at all Kia dealerships in large quantities.
Previously, the Forte sold in very small numbers, which was a shame because it looked very handsome and very different in a segment populated by generic looking sedans.
The executive sedan has shrunk further, but of late has enjoyed some resurgence, thanks to crude oil prices having gone down. Hyundai’s all-new Sonata broke cover in Christmas of 2014, having grown statelier and more limousine-like. This was followed by the all-new Toyota Camry, the leader in this segment which made a surprise launch earlier in the year.
Subaru previewed the all-new Legacy and its cross-over kin, the Outback, last year and was officially unveiled at this year’s 2015 Manila International Autoshow. The Subaru has gone mainstream, losing the turbocharged flat-four, and replaced by a new cleaner 2.5 liter boxer engine. A six-cylinder boxeer engine is available on indent-order basis. The Legacy remains as the challenger to the driver-focused sedan that is Mazda’s 6, which received some upgrades a few weeks back, together with the unveiling of the Mazda 6 station wagon or estate, currently the only one in this segment, and only one of two estates regularly available in the country.
Mazda’s ingenious SkyActiv engine and transmission technology is the Hiroshima-based firm’s answer to providing improved fuel efficiency, increased performance and better environmental friendliness. And while the Outback has a raised ride height, the driving feel of this wagon-bodied cross-over is still very much like that of a sedan, albeit with an estate body and slightly raised ride height.
Volkswagen is set to shake up the sedan segment with the introduction of the Passat, another famous nameplate which is scheduled to break cover in September this year. The Passat is slightly smaller than the Camry or Accord, but is larger than the Mazda 3 or Impreza. Power will come from a turbocharged 2.0 TFSI engine, a rarity in this segment, and hopefully a DSG dual-clutch transmission.
Multipassenger vehicles and vans
The MPV segment is big in other Asean countries such as Malaysia, Singapore and Thailand, but has not taken off as well as expected in the Philippines. Nonetheless, this segment is slowly but surely growing with Honda’s City-based Mobilio making a surprise appearance on local shores. This is Honda’s way of increasing its model range as it lacks presence in the diesel-powered pickup and SUV segment which accounts for a third of the overall car sales.
Kia also made a big impact by launching the all-new Grand Carnival, looking more like a traditional American minivan but with an ace up its sleeve: its impressive 2.2-liter R-eVGT engine that delivers astonishing power and fuel efficiency mated with all the luxuries one expects to find on more upmarket vehicles. Indeed, the industry has been making a massive push to provide more safety equipment and luxurious niceties in mass-market and more affordable vehicles.
Toyota unveiled its all-new Alphard, which has one of the most prominent snouts in Motoring history. It’s bigger, bolder and more luxurious than ever.
Key rival Honda, in turn, unveiled its all-new Japanese-spec Odyssey MPV. The Japanese-spec Odyssey is smaller than the previous, US-sourced minivan, but packs a more efficient 2.4-liter four-cylinder Earth Dreams engine mated to a CVT transmission, giving the Odyssey just the right amount of grunt for our tight city streets while delivering improved fuel consumption over the previous V6-engine equipped variant.
In the traditional van segment, an old name, Nissan’s Urvan, was finally replaced by the new NV350 Urvan that boasts of newer technology and a better, safer chassis. No doubt this will be a favorite for entrepreneurs as well as the shuttle service business, thanks to its massive space and a powerful 130 HP output from its YD25DDTI 2.5-liter CRDi diesel engine, and crucially, 356 Nm of torque. This model helps solidifies a strong Nissan squarely back in the competition and on top-of-mind recall for car buyers.
The most anticipated model which will make its first appearance next year is Toyota’s all-new Innova. Sources from Toyota Motors Philippines says that the Fortuner will land first, followed by the Innova a few months after, completing the modernization of Toyota’s IMV trio in the Philippines.
Compact crossover SUVs
Honda leads the charge with the all-new HR-V, reviving a famous nameplate back in the 1990s. The HR-V is a smaller, exclusively front-wheel driven cross-over that slots in underneath the CR-V segment, but offers impressive big-car refinement.
Interior space and back-seat comfort are impressive, making this a hit with female drivers and young families, thanks to comparable interior space with the CR-V all in a smaller, more manageable exterior size.
Hyundai, the other H-badge, also recently unveiled two compact cross-over SUVs: the i20 Cross Sport, which takes the fight to the HR-V and the Subaru XV as well as Ford’s EcoSport; and the updated Tucson which helps give it a new lease on life to compete against the new breed of newer, more sophisticated and more stylish crossovers from Honda (CR-V), Toyota (RAV4), Nissan (X-Trail) and Subaru (Forester).
This segment—with its far-improved all-weather, all-terrain capability and increased interior cargo capacityis—is set to grow should crude oil prices remain low in the foreseeable future and as more female drivers take to the roads.
Luxury brands
Aston Martin has officially been introduced to the market. The latest British entrant is a joint venture between the Soong family and the Tagle family, both pillars in the automotive industry. This means there are now eight British automotive brands in the country (Aston Martin, Bentley, Jaguar, Land Rover, Lotus, Mini, MG and Rolls-Royce). Will someone finally bring in McLaren cars to bring the tally to nine?
Audi is set to unveil face-lifted the A6 and A7 sedans which now feature GPS capability, a badly needed option as rivals BMW and Lexus have had this option for two years already.
The big models to watch out for are Audi’s new R8+ and the Q7 SUV.
The R8 is expected to hit local shores towards the end of 2015, while the Q7 will be previewed at this year’s Frankfurt Motorshow, and probably make a landing by Q2 or Q3 of 2016.
The all-new A4 will also break cover in late 2016 along with the range-topping A8 limousine.
BMW recently unveiled the 2-Series Active Tourer, the brand’s first ever front-wheel drive model. Long-time BMW aficionados cried foul, but the 2-Series is set to capture a totally new audience of mostly first-time BMW buyers. The Bavaria-based firm will also unveil its all-new G11/G12 codenamed 7-Series executive limousine, based on BMW’s latest CLAR chassis architecture as well as a raft of all-new M-variant X5 and X6 models.
The all-new X3 sports activity vehicle is also now available, heating up the compact luxury SUV segment against Lexus’ RX350, Audi’s Q5 and Porsche’s Macan.
Ferrari has unveiled the 488 GTB but the timeline of its arrival to the Philippines is still uncertain as demand for the current 458, particularly the Speciale’ high performance model, remains strong with a few orders still unfulfilled.
Many are curious if the turbo-charged V8 model will have the soul of a normally aspirated V8. One thing’s for sure though, the 488 GTB will be much faster and much more easier to drive, thanks to turbocharging, compared to the peaky 458’s normally aspirated V8.
Jaguar is set to introduce two new models soon: the all-new XE compact sports sedan, which has received high praise from the international motoring media, and the mid-size executive sports sedan that is the XF which will be previewed at late September’s Frankfurt Motorshow.
Lamborghini Philippines will have a solitary LP750-4 Super Veloce arriving via first-class cargo. Due to massive global demand and limited production numbers, only one lucky owner will have 750 hp at his disposal all the way to 360 km/h. This will be the most powerful road-going exotic vehicle available from a showroom floor in the entire Philippine market.
Land Rover’s latest Discovery Sport was locally launched just this week. It utilizes the Evoque’s underpinnings with refreshed powertrain/drivetrain, chiefly the new ZF 9-speed automatic on the top-of-the-range variants.
The nine forward speeds negate the need for a traditional low-range transfer case, giving the Discovery Sport amazing off-road ability, matched with the industry leading Terrain Response Management System.
Lexus will launch the new ES350, which gives the mid-size Lexus a significant advantage over its rivals in this segment. The ES350 is geared towards chauffeur-driven executives while the GS midsize sedan is for those who prefer to drive themselves.
The LX570 (and its LC200 Land Cruiser twin) is set to receive a mild face-lift towards the end of the year.
Lotus has officially opened its showroom doors, bringing with it the Elise, Exige and Evora. Unique, offering more panache than the usual German offerings with typical British flair, will Colin Chapman’s automotive ethos take root in the hearts of well-heeled buyers in the Philippines? One thing’s for certain, it adds variety and excitement to the mix.
Mercedes-Benz has been a very busy brand lately. The entry of a new partner in the group (Rene Nunez, who is now CATS Motors president) has seen big changes. But enthusiasts only care about two things: G and T.
The Mercedes AMG GT sports car, targeted squarely at Porsche’s 911, will be arriving on Philippine shores in a few weeks. This will shake up the sports car market significantly.
On the other high-end tier, the Mercedes-Maybach S600 limousine will also arrive, challenging Rolls-Royce and Bentley for the super luxury limousine crown.
For the more traditional Mercedes-Benz buyer, the renamed and refreshed GLE SUV (which replaces the ML nomenclature) and the GLC (which replaces the GLK name as well) are also landing, making the silent German invasion much bigger, much greater.
After a long absence, Mercedes-Benz will also unveil its stylish S-Class coupe, which in AMG trim, will be a worthy challenger to Aston Martin’s DB9 and upcoming DB10, Bentley’s Continental, and Rolls-Royce Wraith.
Porsche has been quiet lately, but the year-end arrival of its most desired 911 variant, the GT3 RS, is a landmark of sorts. Produced in limited quantities worldwide, local buyers have been fighting, harassing and arguing with PGA Cars Porsche and among themselves to bring in more units of this highly desirable and much vaunted 911.
The next major facelift of almost all Porsche models, particularly the 911, will see a switch to turbocharged, smaller capacity engines so the Mk.1 991 GT3 RS might be Porsche’s very last naturally-aspirated high-performance road-going track-biased model.
Aside from the premium brands, Mazda has unveiled the all-new Miata MX-5, the world’s best selling sports car.
The MX-5, lining up against the Toyota 86/Subaru BR-Z twins, and indirectly, Honda’s CR-Z and Hyundai’s Genesis, brings back no frills motoring enjoyment to the masses.
On the other end of the spectrum, Nissan has finally announced that they will be importing limited quantities of its much-vaunted R35 GT-R. Willy Tee Ten’s Nissan dealerships have been appointed as sole retailer and service center for the GTR.
Prices have yet to be confirmed, but it will be in the P5.6 million to P7.5 million range depending on the variant, specification and equipment level.
Will Honda’s all-new hybrid-powered, all wheel-driven twin-turbo V6 NSX reach our shores soon? It remains unconfirmed, but the answer is yes, the NSX will hit our shores. It’s just a question of when.
While luxury brands only account for 5 percent of the total car market, it has a halo effect on the rest of the model ranges and the industry. It is also an aspirational product for many who cannot yet afford to buy such vehicles.
All these are good indicators of how well the automotive industry is doing. Without this segment, the industry cannot reach its 310,000 projection for 2015.
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