Isuzu Cebu sees faster growth-A A +A
Monday, August 19, 2013
ISUZU Cebu Inc. (ICI) projects the company to grow stronger this year, banking on the country’s fast growing small and medium enterprise (SME) and construction sectors.
ICI general manager Steve Gingco said the company’s optimism is driven by the strong growth in the commercial vehicle and truck segments as manifested by rapid development in SMEs and construction.
Gingco said that in the last two years, ICI grew 30 percent, higher than the industry’s growth.
“It (growth) stemmed from the company’s high brand equity and value, reliable products and its people,” Gingco said at the sidelines of ICI Mandaue’s 15th year anniversary celebration.
He said Cebu’s automotive industry is growing consistently, particularly in the commercial vehicle segment where Isuzu is one of the dominant players.
Gingco said Region 7 dominates the AUV market.
The truck market, on the other hand, is growing at a faster pace with the growth in the SME sector, which comprises more than 90 percent of the country’s economy, and the boom in property development.
“The growth in the industry is a reflection of the country’s economic condition but given the positive developments, we expect continued growth given the high purchasing power of Filipinos, growing businesses, strong inflow of overseas remittances and low interest rates and easy financing schemes,” said Gingco.
The latest report by Chamber of Automotive Manufacturers of the Philippines (CAMPI) showed an 8.2 percent increase of car sales in July to 15,686 vehicles from 14,503 in the same period last year.
Passenger car sales increased by 16.8 percent to 5,063 units from 4,336 units in the previous year, while commercial vehicle sales went up 4.5 percent to 10,623 units from last year’s 10,167.
Car sales in the first seven months this year went up by 17.8 percent to 102,913 vehicles from 87,374 in the same period last year. Commercial vehicles sales grew 14.2 percent to 69,815 units while passenger car sales went up 26.1 percent to 33,098 units. Toyota continues to lead industry with a 40 percent market share followed by Mitsubishi at 24 percent; Honda Cars (8.4 percent); Ford (7.3 percent); and Isuzu (6.7 percent).
ICI is a subsidiary of Isuzu Automotive Dealership Inc. (IADI), wholly owned by Ayala Automotive Holdings Corp., and a franchised dealer of Isuzu commercial vehicles.
It has three branches located in Mandaue City, Cebu Business Park, and Talisay City.
By 2014, Gingco said ICI is planning to open three more branches in the Visayas-Mindanao areas. They also plan to relocate the Cebu Business Park branch to a bigger space at the North Reclamation Area by the middle of next year.
Gingco, however, declined to disclose the investment of the planned expansion and relocation.
ICI’s top markets are the overseas Filipino workers, young affluent professionals, entrepreneurs and families. It currently has 114 employees.
Published in the Sun.Star Cebu newspaper on August 20, 2013.