Monday, August 04, 2008 Demand for small cars rises; vehicle sales remain high in RP
RISING fuel prices has brought in a new vehicle size class that is now slowly dominating the local street scene—the subcompact cars.
Although some auto dealers said the effect on sales caused by fuel prices is yet to be felt by the industry, they have observed a substantial increase in the demand for subcompact cars.
“The demand for subcompact cars is high worldwide,” said Edward Onglatco, president of Hyundai Cebu Inc. He added that in Cebu, all subcompact cars allocated to the branch on a monthly basis gets sold out.
“Right now, we have to ask for additional allocations from Manila,” he told Sun.Star Cebu in an interview.
Hyundai’s contribution to this class type is the Getz, which comes in gasoline and diesel engine models.
The Getz diesel model can run 10 to 12 kilometers of city driving with one liter of fuel.
Hyundai will also introduce a new series of subcompact cars by the end of this month, to take advantage of the growing number of orders for such vehicle types.
Onglatco announced that Hyundai will be introducing to Cebu its I series models, such as I10, which is “smaller than the Getz.”
The I30, which is a new segment of hatchback versions, will also be launched.
Hyundai is also studying the market in the Philippines for liquefied petroleum gas (LPG)-supported vehicles since it has already started manufacturing LPG-cars in Korea and Japan.
Brian Chua, president of Suzuki Auto Cebu, said showroom inquiries for subcompact vehicles have also increased.
He added that even Suzuki’s corporate clients, which usually purchase in fleets, are also now buying the subcompact versions.
The profile of buyers are also “mixed,” said Chua. He described the Philippine market as “unique” because when fuel and food prices are high, car sales are still “sustained.”
Chua and Onglatco said their dealership businesses remain confident about the sales performance of their sedans and SUVs (sports utility vehicles).
The Suzuki fleet of subcompact vehicles includes Alto and Swift.
Earlier, the company also introduced a subcompact SUV, the Jimny. Although it is a four-wheel drive vehicle, Chua said the Jimny can run for 12 to 15 kilometers of city driving on one liter of fuel.
But he considers the Alto the most fuel-efficient among the Suzuki vehicles since it can run as much as 21 to 23 kilometers with one liter of gasoline. The Swift runs 10 to 12 kilometers per liter.
Chua also revealed that Suzuki Cebu has “zero-stock” on subcompact cars due to rising demand. New stocks are expected to come in this month, though.
Subcompact cars, however, are not just known for their fuel efficiency.
“It is also easier to find a parking space for them,” said Chua.
Prices for subcompact cars are also lesser compared to the regular sedan cars.
The price of a Hyundai Getz starts at P520,000. The Suzuki Alto is priced at P428,000 but it only comes in manual transmission.
The Swift is priced at more than P700,000 while the Jimny SUV starts at P770,000 for the manual version and P825,000 for the automatic.
Prices for Hyundai’s I-series are yet to be announced. (DME)
