Wednesday, December 13, 2006 Cebu car dealers deem integration to be good
A GROUP of automotive dealers in Cebu welcomed the drafting of the Association of Southeast Asian Nations (Asean) roadmap that includes the automotive industry among the 11 pioneer sectors for economic integration.
“It is something we look forward to because it will enhance the quality and functionality of vehicles (entering) the country that will cater to a different market,” Cebu Auto Dealers Association (Cada) spokesman Lowell Francis Belarmino said.
Asean leaders are working on establishing free trade among member-countries and trading partners like Japan, China, India and the United States.
Belarmino, however, said that Thailand and Malaysia are the Philippine’s main competitors since these countries have a comprehensive car program.
But he remains optimistic that the Filipino’s ability to respond to certain “barometers of excellence” will be an edge.
Apart from the entry of brand new foreign vehicles, the agreement will spur the establishment of assembly plants in the Philippines, and free up restrictions on technology transfer, Belarmino told Sun.Star Cebu.
“Our partners are apprehensive about using Philippine-made products. But this (integration), will allow the manufacturing of more local products that spells an increase in employment for us,” he said.
Belarmino said the access of brand new cars targeted for middle-income buyers would address the industry’s problem on the proliferation of surplus units.
“The surplus market is a big market and their purchasing power is increasing,” he said.
He said the surplus market is composed of individuals who prefer buying surplus or reconditioned units as they cannot afford to buy brand new vehicles.
With less restrictions, he said he hopes there will be a change in buyers’ attitude towards purchasing brand new cars.
“Maybe when that time comes they will buy new cars, whose prices are comparable to those surplus units, but are in better condition” Belarmino said.
Belarmino also said there is a “paradigm shift” in the choice of cars by Filipino buyers.
The shift, he said, is now towards sport utility vehicles (SUV) and Asian utility vehicles (AUV) that can accommodate up to 10 passengers, have larger luggage space and high clearance suspension.
Belarmino, who is also the sales manager for Hyundai Cebu Inc., said he expects popular car models for 2007 will mostly be AUVs and SUVs.
He said Cada plans to hold its first motor show early next year at the Cebu International Convention Center, which will feature various new car models from its member-dealers such as Hyundai, Isuzu, Volvo, Honda, Kia, Mitsubishi, Suzuki, Ford, Nissan, Chevrolet, Toyota and BMW. (MMM)
