All-time high 417,356 vehicles sold in 2016

Last November, the Philippine automobile industry, buoyed by first semester sales, raised its 2016 total sales target from 350,000 units to 370,000 units.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) saw the higher target as a stepping stone towards achieving “Vision 2020,” the industry’s goal to sell 500,000 units by 2020 mainly through the Comprehensive Automotive Resurgence Strategy (CARS) program.

CARS is the government program that would revitalize the auto industry by attracting fresh investments worth $1.2 billion, generating some 200,000 new jobs, and propelling economic activity estimated at P300 billion.

Last week, CAMPI announced that together with the Truck Manufacturers Association, it had sold 359,572 vehicles in 2016, up 24.6 percent from the 288,609 units sold in 2015.

Even though this did not quite meet the 370,000 target, the group of 15 auto manufacturers was confident that it would be achieved when CAMPI sales are combined with the total sales chalked up last year by the Association of Vehicle Importers and Manufacturers (AVID).

Their bullishness paid off when AVID released last Monday the full year sales report of its 10 members: 93,179 vehicles sold in 2016, a remarkable 60 percent growth over 2015’s 58,256.

AVID’s report pushed up total industry sales to 417,356, way above the 370,000 goal.

 

Rommel Gutierrez, CAMPI president and Toyota Motor Philippines Inc. vice president, said that the association was glad to have surpassed the sales target. “Successful introductions of new models, complemented by various events and promotions, enabled us to meet the increasing customers’ demands in an expanding Philippine market.”

Ma. Fe Perez-Agudo, AVID president and Hyundai Asia Resources, Inc. president and CEO, said: “2016 was indeed a banner year for the automotive industry as AVID sales surged with an impressive 60 percent growth. As such, AVID looks forward to 2017 with limitless possibilities and opportunities, as we continue to delight the Filipino market with an array of innovative and value-laden products and services.”

Looming dark cloud

Although a dark cloud is looming over the industry in the form of a proposed tax reform package endorsed by the finance and transportation departments that will increase excise tax rates on new car purchases, CAMPI and AVID still hope to attain their Vision 2020.

Meanwhile, the 2016 sales reports of CAMPI and AVID show increasing customer preference for light commercial vehicles (LCVs) over passenger cars (PCs).

In the CAMPI sales report, LCVs cornered 64.43 percent market share compared to 37.04 percent for PCs while in the AVID report, LCVs accounted for the bulk of sales with the LCV segment growing by 60 percent.

The strong demand for LCVs—sport utility vehicles, minivans, multipurpose vehicles and pickup trucks—is traced to the declining price of oil last year. But with pump prices increasing almost every week now due to the recent decision of petroleum exporters to cut production, consumers may give fuel-efficient, affordable PCs a second look.

Compiled in this report are tables showing how the various brands and models fared in 2016 compared to 2015. Suzuki Philippines did not reveal their sales figures per model, thus the Ertiga, Ciaz, Celerio , etc. are not included in the rankings.

Top 10 performers

Every year, it is a given that Toyota would rank first in sales, followed at a distance by Mitsubishi. Toyota has upped its market share to 43.32 percent, proof of the trust and loyalty that the brand has earned in this country, and it wouldn’t surprise anyone if it eventually gains 50 percent market share.

Hyundai overtook Ford by a mere seven units sold, grabbing third place from the American brand. This is no small feat, since Hyundai does not offer as wide a range of vehicles as Ford does in the Philippines. Ford’s best sellers are the EcoSport subcompact crossover, Everest midsize SUV, and Ranger pickup truck, while Hyundai’s are the Eon mini subcompact, Accent subcompact, and Tucson compact crossover.

To expand its stable of vehicles, Hyundai Asia Resources, Inc. (HARI) is reportedly bringing in several new models this 2017. Did I hear that a subcompact crossover is one of them?

Among the top 10 performers, only Kia and Chevrolet experienced a decline in sales last year. Chevy managed to stay inside the top 10 circle mainly because of the marketability of its recently facelifted Trailblazer midsize SUV.

Top 10 nameplates

It’s amazing that the same number of Vios units were sold in 2016 as in 2015: 33,173.

Just as amazing is Toyota’s monopoly of seven of the 10 slots in the nameplates ranking in 2016 as well as in 2015.

The Fortuner relegated the Innova to fifth place from second as these two Toyotas are similarly priced and it’s more macho to tool around in a midsize SUV than in a multipurpose/Asian utility vehicle.

The Montero Sport, which ranked sixth in 2015, missed the 2016 list since the nameplate was besieged with SUA (sudden unwanted acceleration) rumors when a new iteration was launched last year. Year to date, the totally revamped 2016 model Montero Sport sold only 10,786 units.

Unfortunately, the SUA controversy, which was recently dismissed by an independent automotive testing lab in the United Kingdom as mechanically unfounded, affected Montero Sport sales in the Philippines.

The Ford Everest and Isuzu mu-X are locked in close competition, with only 204 units sold keeping the mu-X on top. But remember, the all-new Everest was launched in Manila late last year, which means that it can overtake this year the mu-X, which still has to undergo a full generation change like the Everest did in 2016.

Top 5 pickup trucks

Ford, Nissan, Isuzu and Mitsubishi still have to figure out what makes the Toyota Hilux the consistent leader in pickup sales.

Ford, especially, is eager to be No. 1 here, since in the good old USA, the Ford F-150 has been the best-selling nameplate across all categories for many years now, and the Ford Super Duty (F-250 and F-350) outclassed the competition to win the Motor Trend 2017 Truck of the Year award.

In fact, Ford Motor believes so much in the Ranger that it will be re-introduced to the North American market.

Among the five top pickups, the Navara is the best-looking and offers the most comfortable ride, but these qualities are not enough to overtake the Hilux and the runner-up Ranger in sales.

Top 4 minivans

Again, Toyota dominates with two out of five. Filipinos being a clannish people with big extended families, buying a minivan is given priority over a passenger car that can only seat four or five persons.

But minivans are not exactly cheap, so many consumers like returning OFWs consider the more affordable multipurpose/Asian utility vehicles.

Top 5 MPVs/AUVs

The Honda Mobilio, launched only a year or so ago in Manila, sells well because it looks like a station wagon, or what the Brits call an estate car. Unlike the other MPVs listed here, the Mobilio is not diesel-fed. It does seat seven, though, and that qualifies it for MPV ranking.

Mitsubishi Motor Philippines is reportedly phasing out production of the Adventure in order to concentrate on the Mirage mini subcompact, its entry in the CARS program.

Toyota Motor Philippines, as always, offers something for everyone. For those who find the Hilux-based Innova too expensive (it costs almost the same as the Fortuner) or too big, there is the Avanza, which also accommodates seven passengers and is offered with either a diesel or a gasoline engine.

Bearing the Toyota badge made the Avanza immediately marketable, second only to the Innova and outselling the Crosswind and the Adventure, both of which have been around for many years long before the Avanza.

Top 5 mini subcompact cars

The ranking hasn’t changed in this category, and all the models gained except for the Kia Picanto, whose sales went down by 1,001 units.

The Wigo, which Toyota introduced to the market after noticing the soaring sales of the first Mitsubishi Mirage, soon overtook the latter in sales. Mitsubishi regained some footing and consolidated its runner-up position by coming up with a four-door Mirage sedan, the G4, to complement the original Mirage mini hatchback.

Actually, the Eon preceded the Mirage and the Wigo. Its success may have alerted Toyota and Mitsubishi to enter a market segment they had earlier overlooked.

Top 5 subcompact cars

The durable Vios reigns over not only the subcompact field, but over all segments and categories. Recent upgrades like a dual VVT-i engine make the Vios all the more attractive to young people buying their first car or beginning a family.

The Accent, ranked third last year, has overtaken the City in total sales to snatch second place. One advantage the Accent has over the City is that it has a diesel variant, and in a market like ours where diesel fuel costs about five pesos less per liter than unleaded gasoline, it’s an excellent sales pitch.

The Jazz, which is considered a premium subcompact because of its retail price and Japan Car of the Year heritage, outlasted the Yaris, which bowed out of the list in 2016.

The current Yaris looks snazzy and it is priced lower than before since it is imported CBU from Thailand, no longer from Japan. But underneath that sporty architecture is an aging Toyota powertrain.

The Mazda2 SkyActiv, which won the Car of the Year title last year, is selling well and may qualify for the Top 5 Subcompact Cars this year.

Top 5 compact cars

Although Toyota dealers sold 545 less Corollas in 2016 compared to 2015, it still remains the best-selling compact car in our country. A facelifted and re-adorned Altis was previewed by the motoring press last December.

Some people look at the Almera as a subcompact, but considering its size and roomy interior, it should qualify for the compact car category. Its spacious cabin is precisely what makes it sell, supplemented by its comparatively low price.

The sleek new shape of the Civic plus the potent turbocharged engine of the RS variant pushed Honda’s iconic compact car to third place from fourth in this ranking, dislodging the Mazda3.

However, don’t underestimate the Mazda3 SkyActiv. It is not only one of the most stylish cars on the road, it was honored as one of the 10 Best Cars of 2017 by Car and Driver magazine in the United States.

The Elantra, all new for 2017, re-entered the list of top compact cars last year with sales of 1,631 units, in the process dislodging the aging Lancer EX. Industry scuttlebutt indicates that, like the Adventure, the Lancer is headed for the exit so that Mitsubishi can devote more resources to the Mirage’s participation in CARS.

Top 5 executive cars

That a Toyota should top this list is a given, what with the Camry popping up in most people’s minds when you mention the words, executive car. A totally new generation Camry is expected this year.

Although it is not an exciting car to drive, the Camry offers reliability, durability, a quiet, compliant ride and enough class to earn the respect of onlookers.

In 2016, sales of the Levorg zoomed to 157 units from only 10 in 2015. It’s because the Levorg was released on the market only in December 2015. The Levorg is an AWD sport wagon powered by one of Subaru’s famous turbocharged boxer engines; but it costs P1.718 million.

The Mazda6, on the other hand, comes in sedan form or as a sport wagon. It is more engaging to drive than the Levorg, and looks just as svelte and sporty. And it’s just as expensive as the Levorg.

For some reason, the Honda Accord is not adequately appreciated in the Philippine market, thus its low sales. But it surely belongs to the Top 5 Executive Cars list. The Accord V6, by the way, has been voted twice as one of the 10 Best Cars of the year by Car and Driver.

Top 5 compact SUVs/crossovers

For once, a Toyota did not appear on top of a list. The all-new Tucson took first place in 2016 after giving way to the Subaru Forester in 2015.

The Tucson’s edge over its rivals is that it is offered with a choice of engines, diesel or gasoline. On this score, expect the Tucson to hold on to first place for years to come. Hyundai was the first automaker to proclaim the intro of the common rail direct injection (CRDi) diesel engine in the Philippines via the Tucson, although Isuzu was here first.

Nissan Philippines started selling the Juke in January 2016, but already its sales digits have surpassed the Honda HR-V, Forester and Toyota RAV4. Perhaps the funky Juke appeals to millennials as an out-of-the-box, defiant ride.

The HR-V is smaller than the CR-V, and accordingly lower priced. No wonder the CR-V dropped out of the list in 2016. With the smaller Honda BR-Z having just arrived, will the HR-V soon be displaced, too?

The Forester owes its perfect balance to its horizontally opposed boxer engine. An excellent crossover, it comes with either a naturally aspirated engine or a turbocharged engine.

Top subcompact SUVs/crossovers

The EcoSport is way ahead of the competition because Ford was the first automaker to recognize the need for an affordable subcompact SUV that could drive through Metro Manila’s rainy season floods. The EcoSport is Ford’s second best seller in the Philippines next to the new Everest.

The Trax came late to the party, but managed to increase sales to 550 in 2016 from 153 in 2015.

The Mazda CX3, another latecomer, is expected to climb up the list this year. The Kia Soul is another funky-looking vehicle like the Nissan Juke, but somewhat smaller, squarer, and touting a big difference: a CRDi engine.

Top 5 midsize SUVs/crossovers

The new iteration of the Fortuner catapulted its sales digits beyond the reach of competitors in 2016, whereas in 2015, the Montero Sport was within striking distance of first place. But the SUA controversy damaged the Montero Sport’s image and pulled it down to fourth place in 2016.

In the meantime, the mu-X rose to runner-up spot, bypassing the all-new Everest by a mere 204 units. Expect a mano-a-mano fight between the mu-X and the Everest this year. It’s high time for the mu-X to undergo a generation redesign to redouble its chances of emerging as the winner.

The Trailblazer is another SUV that needs a complete revamp, although it was facelifted last year. The Trailblazer posted lower sales in 2016 compared to 2015

Top 5 premium SUVs/crossovers

The Ford Explorer claimed top spot in 2015, but was relegated to second place by the Toyota Land Cruiser in 2016.

These premium SUVs are bigger, taller and wider, are powered by V8s or V6s, have richly furnished interiors to the degree of decadence and cost as much as four million plus pesos.

Nonetheless, they still enjoy a market in the Philippines.

Top premium car distributors

Note that the total sales of Auto Nation Group includes Mercedes-Benz trucks as well as cars, while Asian Carmakers Corp. includes BMW cars only in its sales report.

Lexus Manila is exempted from paying tariffs for the importation of Lexus cars from Japan because of the Japan-Philippines Economic Partnership Agreement.

Summing up

With417,356, vehicles sold last year, the industry has reason to be bullish about reaching its Vision 2020 of selling 500,000 units way before the target year. Maybe it should be renamed Vision 2018?

 

Author’s note:   The centerspread article in Inquirer Motoring (“Auto Industry Sales Outstrip 2016 Target” January 18, 2017) immediately elicited a question from members of the auto industry: Could the grand total number of 452,751 units reported for 2016 have been bloated by including twice the sales numbers of Ford Group Philippines, Inc. (FGPI) and Auto Nation Group (ANG) in the counting?

The question is a valid one since both the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Association of Vehicle Importers and Distributors (AVID) claim Ford and ANG as their members.

The 452,751 grand total was arrived at by adding the 359,572 units reported sold by CAMPI in 2016 and the 93,179 vehicles reported sold in 2016 by AVID.

In both the CAMPI and AVID 2016 sales reports, Ford sold a total of 33,688 vehicles in 2016. But there was a difference between the two groups regarding ANG’s 2016 sales.

CAMPI reported that in 2016, ANG sold 1,022 vehicles while AVID reported that in the same year, ANG sold a total of 1,707 vehicles.

If we deduct 35,395 units (representing Ford’s 2016 total of 33,688 plus ANG’s 2016 total of 1707 as reported by AVID) from the 452,751 grand total posted by the Inquirer article, we arrive at 417,356 as the actual grand total number of vehicles sold by the industry in 2016.

That 417,356 number surpasses the industry’s 370,000 target by 47,356 units. So the article’s headline “Auto Industry Sales Outstrip 2016 Target” still holds.

To avoid similar confusion in the future, perhaps Ford and ANG should decide once and for all which organization they belong to: CAMPI or AVID?

Or, better still, CAMPI and AVID should join forces in a united effort to really move the Philippine auto industry fast forward.