When the chips are down, expect wily Filipino business owners to innovate and succeed at any circumstances.
The local car industry was one of the hardest-hit sectors by the raging blows of the COVD-19, but thanks to the industry “frontliners”, it remained resilient, steady on the way to slow recovery.
While principal brand makers develop and re-route their strategies to stem the adverse effects of the pandemic, it was almost like the fate of survival was left to the hands of the local car dealers—considered as the car industry’s frontliners.
Karlo Domingo, who manages one of the family-owned Isuzu dealerships in North and Central Luzon, achieved a perfect sales target through digital innovation and re-focusing of energy.
“Car dealers, including us, took a bad hit in terms of service operations. Areas were quarantined and have different protocols on allowing vehicles to come in and out for several months,” admitted Domingo.
With limitations in the movement of people due to government-imposed quarantine that may last longer, Domingo and his management team developed a business strategy—the digital way. And it proved to be an excellent formula for success.
“The number of walk-in customers might not be the same as before but there are ways of reaching them safely online. The digital platform for marketing is a great tool we have yet to maximize.”
Testament to Domingo’s Isuzu Bulacan branch was its being awarded the top Izusu Branch of the Year from Izusu Philipppines for achieving 100 percent sales target in 2020.
The BM Domingo Motor Sales Inc.’s branches in Cabanatuan and Isabela also achieved the same feat in terms of units and parts sales.
Of course, it also helped that Isuzu has a more diverse models – from passenger to commercial vehicles— that proved more useful at a time when people want mobility for business purposes rather than leisure or casual transport.
“I think that our products are in a segment that was needed in situations like these,” Domingo added.
“Our truck lineup covers a wide range of businesses. From utility vehicles to tractor heads. The Isuzu Traviz, for example, is a light duty truck, perfect for SMEs that can be paired with a variety of truck body application.”
For this year, Domingo said the company is also banking on the government’s full support of the Jeepney Modernization Program of which Isuzu is actively participating.
“I believe that the four-wheeler trucks will have the biggest demand in the truck category for booming industries such as courier services, food deliveries, and medical needs. Isuzu can provide such vehicles with the prefered truck body suited for every client's needs.”
“For now, our business strategy is to continuously explore the potential of digital marketing.”
Industry setback
The pandemic claimed two of the biggest Japanese automakers which recently closed their manufacturing facilities in the country.
First was Honda Cars Philippines which stopped production operations for its compact SUV BR-V and small sedan City in its plant in Sta. Rosa, Laguna in March last year at the onset of strict quarantine protocols imposed by the government aimed at controlling the COVID-19 pandemic.
In a statement, Honda said its action was part of the optimization of its production operations in Asia and Ocenia.
Honda Cars Philipines though will continue its automobile sales and after-sales service operation in the Philippines, through the utilization of Honda’s Asia and Oceania regional network.
Another Japan-based carmaker Nissan Motor Philippines has also informed the Department of Trade and Industry that it was ending its assembly deal with Univation Motors, which assembled Almera units in its manufacturing operations in Sta. Cruz, Laguna.
As a result of the assembly plant shutdown, some 133 workers faced displacement althought Nissan assured that they would be compensated well.
The first to close down their production facilities in recent years were Ford Motor Co. in June 2012 and Isuzu’s pickup truck assembly plant in 2019.
DTI secretary Ramon Lopez acknowledged the critical situation the local auto industry is in right now and attibuted this largely on surge in imports with the country being one of the most open markets among Southeast Asian nations in terms of automotive vehicle imports.
In an effort to stop the bleeding, at least temporarily, the DTI has imposed a provisional increase in tarrif on imported passenger cars and imported light commercial vehicles that will be in effect within 200 days.
“The provisional safeguard measures need to be immediately put in place to protect the domestic industry from further serious injury,” Lopez said.
Positive prospect
Isuzu Bulacan’s Karlo Domingo, just like another industry expert, expects the car industry to bounce back this year.
“I personally think that the automotive industry will recover from last year's decline. The industry is starting to pickup, new vehicle models are coming in, and the market is starting to adjust to the new normal. All these factors will contribute to regain numbers. There are booming businesses that have great potential which will be needing vehicles for operation.”
While growth is expected to be impeded by the government’s import safeguard measure, car industry players remain optimistic and will not hold back in their expansion and introduction of new models for the Filipino car buyers.
KIA Philippines president Manny Alegado said it projects to double their market share as it banks on two new models that it plans to bring in within the second half of 2021 and possible two more if the acceptance is good.
KIA will also introduce new products as part of its after-market services, beginning with a new mineral oil which is 40 percent more affordable than synthetic oil.
It also intends to spread its wings with the planned addition of eight more dealers and two sales outlets to add to its exisiting 30 dealers nationwide.
Isuzu, for its part, is also expanding this year with new branches, most recent was the Bacoor sales office. It is also is introducing in March the latest version of its Isuzu pick-up truck.
Chavit's bet
Undettered by the pandemic that still persists, GAC Motor (Guangzhou Automotive Group Co. Ltd.), one of China’s top-ranked auto brands is making a strong bid this year to be spearheaded by the group of former Ilocos Sur Governor and now Narvacan Ilocos Sur Mayor Luis “Chavit” Singson
With 66 years of manufacturing, GAC Motor has become one of the most trusted Chinese car brands in terms of quality and reliability.
Through the years, it has invested heavily in a first-class Research and Development (R&D) and recently in a world-class supply chain suystem that earned for it top Chinese brand honors by J.D. Power Asia Pacific for eight consecutive years.
If a GAC car were a robot, its citizenship would be multi-nation.
GAC Motor is being supplied by the leading auto part brands in the world such as Bosch, Denso, Continental, Aisin, Siemens, and Magna. It has also partnered with Toyota, Honda, Mitsubishi, Isuzu, and Fiat Chrysler Automobiles, N.V. for local production of foreign brands in China.
In recent years, the brand has witnessed steady development by strengthening its global brand presence in 25 countries in the Middle East, South Africa, and Southeast Asia.
Singson was so impressed that he vowed and envisioned bringing this automotive brand to the Philippines. In October 2018, the GAC Motor brand was officially launched in the country under the exclusive distributorship of Legado Motors, Inc.
With the on-going demand for passenger vehicles and positive market feedback, GAC Motor is set to introduce its 7-seater MPV to the Philippine market: the 2021 GAC GN6.
So far, the local GAC Motor vehicle line-up consists of five models namely: the GA4 sedan, GA8 executive sedan, GS3 sub-compact SUV, GS4 compact SUV, GS8 mid-sized SUV, and the GN8 minivan.
