The rise and rise of Nissan and Suzuki

Tabulation by Aida Sevilla-Mendoza

It’s confirmed: the rise and rise of Nissan and Suzuki in total vehicle sales is consistent, not a temporary blip in the auto industry’s 2019 business performance chart.

In the November 2019 year-to-date joint sales report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (Campi) and Truck Manufacturers Association (TMA), only Nissan Philippines, Inc. (NPI), and Suzuki Philippines, Inc. (SPH), gained double-digit growth in sales.

NPI retained the No. 3 slot by selling 39,945 units, versus 31,663 in the same year-ago period for a positive 26.2 percent growth, and an increase in market share from 9.73 percent, to 11.88 percent.

Suzuki overtook Ford to rise to 4th place, from 5th in Campi’s June 2019 YTD sales report. SPH scored 22,049 unit sales, compared to 18,185 in the same year-ago period for a positive 21.2 percent growth, and an increase in market share from 5.59 percent, to 6.5 percent.

Meanwhile, perennial market leader Toyota Motor Philippines Corp. (TMP) gained 5.5 percent positive growth by selling 146,145 units, versus 138,476 in the same year-ago period. TMP’s market share thus rose from 42.53 percent, to 43.47 percent.

Campi president Rommel Gutierrez, who is concurrently 1st vice president of TMP, noted that the joint Campi-TMA sales report shows that total vehicle sales reached 34,465 units for the month of November 2019, reflecting a 10.3 percent growth from the 31,258 units sold in the same year-ago month.

Year-to-date November 2019, Campi-TMA members sold 336,226 units, a 3.27 percent increase, versus the same period a year ago.

HIGHEST MONTHLY SALES. But on a month-to-month basis, the increase was only 0.2 percent, compared to October 2019. Nonetheless, Gutierrez pointed out that the November sales performance was the highest monthly sales for the industry this year, and also the second successive month that Campi and TMA posted record-breaking sales.

Meanwhile, Bermaz Auto Philippines, Inc., the distributor of Mazda vehicles, broke into the Top 10 list by selling 2,405 units. That is less than the 3,337 Mazda units sold in the year-ago period, but Bermaz still earned the No. 10 slot, pushing out Chevrolet which ranked 10th in the June 2019 YTD consolidated sales report of Campi, and the Association of Vehicle Importers and Distributors (Avid).

Unfortunately, as of press time, Avid had not yet released its November 2019 YTD sales report.

Neither had Hyundai Asia Resources, Inc. (Hari) which ranked No. 4 in the consolidated CAMPI-AVID June 2019 sales report.

Most likely, the Top 10 list would be reshuffled with Hyundai hanging on to No. 4, if Avid’s YTD November 2019 sales were to be included. In Avid’s January-October 2019 sales report, Suzuki had already overtaken Ford with 19,648 vehicles sold, versus Ford’s 18,023, but Hyundai still outperformed Suzuki with 26,891 total vehicle sales.

POSTED GROWTH. In the latest Campi YTD sales report, the brands that posted sales growth, aside from TMP, NPI and SPH, were Adventure Cycle Philippines, Inc. which sold 4,706 Kia vehicles versus 2,168 in the year-ago period, for an increase in market share from 0.67 percent, to 1.40 percent. The Korean brand thereby snagged 8th spot in the Campi list.

Overtaken by Kia but still holding on to 9th rank is Foton Motor Philippines, Inc. with 3,977 units sold, versus 3,898 a year ago, for a 2.0 percent positive variance.

Based on the Campi-TMA report, the brands that registered negative growth, are: Bermaz Auto (Mazda) with negative 27.9 percent; Isuzu Philippines Corp. minus 14.6 percent after selling 12,271 units, versus 14,892 in the same year-ago period; Honda Cars Philippines, Inc. minus 13.5 percent with YTD November 2019 sales of 18,489 units, compared to 21,376 in the year-ago period; and Mitsubishi Motors Philippines Corp. which posted a negative 6.4 variance due to 58,057 units sold YTD, versus 62,013 last year.

How do Nissan and Suzuki keep on growing their sales?

It could be the right mix and variety of models they offer at competitive if not affordable prices. At the end of the first semester this year, Nissan reported that their best-selling nameplates were the Navarra pickup truck (9,591 units sold January-June 2019), Terra midsize SUV (5,405 units sold), Urvan multipurpose van (3,195), Almera subcompact sedan (2,061), and Juke subcompact crossover (578).

PRICE RANGES. The Navara’s SRP ranges from P929,000 to P1.48 million. The Terra costs from P1.5 million to P2.15 million. The Almera is priced from P657,000 to P933,000. The NV350 Urvan is sold at P1.16 million up to P1.84 million, while the Juke costs P1.02 million.

The Nissan Navarra thereby outsold the Ford Ranger (6,836 units sold in the first sem with a starting price of P1.029 million, up to P1.695 million), and the Terra outsold the Ford Everest (2,929 units sold at prices ranging from P1.521 million to P2.299 million).

For the first semester (January to June 2019), SPH reported that its total sales reached 10,817 and that its top 3 best-sellers were the Ertiga compact MPV (3,678 units or 34 percent of total sales), Swift subcompact hatchback (1,466 units or 13 percent of total sales), and Celerio mini subcompact hatchback (1,190 units or 11 percent of total sales).

The 2019 Ertiga’s price ranges from P738,000 up to P988,000. The 2019 Swift’s price starts at P755,000 and reaches P899,000 for the top variant. The Celerio’s price range is between P558,000 and P598,000, the lowest prices offered for an entry-level mini subcompact car.

At the end of the third quarter of 2019, SPH’s bestseller list remained the same, led by the Ertiga with 34 percent of total sales, Swift ( 11.4 percent of total sales), and Celerio (11 percent of total sales).

STRATEGIC MARKETING. SPH finished the third quarter this year with a 19 percent sales growth over the same period in 2018. In a press release last September, SPH claimed that its continued sales increase is the result of the brand’s strategic marketing efforts which emphasize numerous promotions and interactive events that are aimed at boosting product visibility.

At the Christmas dinner SPH hosted for the media last week, SPH Director and Automobile Division Manager Keichi Suzuki said: “This year has been wonderful and remarkable for Suzuki Philippines… Our milestones in terms of sales continued with the double-digit growth of 18 percent, compared to that of the industry’s 1 percent growth, and for the first time climbed two posts from 7th to 5th position in the industry ranking.”

Campi president Rommel Gutierrez shares the industry’s optimism that market demand this December will remain robust, aided by continuous sales promotions, and the sustained positive economic outlook as we end the year.

“Historically, December is the month where the industry experiences exponential growth every year,” he said in a press release. “We are continuously working double time to achieve the industry’s overall sales target of 410,000 units which we believe remains achievable.”

By the third week of January next year, we shall know whether the industry has hit its 410,000 sales target when Campi-TMA and Avid will have released their sales reports for the full year 2019. Campi-TMA’s market share of the overall sales target is at 89 percent, while Avid accounts for 11 percent.