HONDA Cars Cebu Inc. (HCCI) is moving to a new and bigger facility soon in the North Reclamation Area, as construction of its new site officially began yesterday.
Its new facility in Cebu sits on a 5,000-square-meter property along A. Soriano Ave. The two-storey, 10-car showroom is touted as one of Honda’s biggest showroom facilities in the country.
Top officials said HCCI’s expansion in Cebu reflects the company’s optimism and confidence in the province’s thriving economy.
HCCI chairman Manny Aligada believes the Japanese automotive brand will have a good future in Southern Philippines, particularly in Cebu, where business activities are booming.
HCCI is a member of the Ayala Group of Companies. Aligada said the company earmarked “a huge investment” for the project. He, however, declined to disclose specific figures.
Aligada noted several factors have prompted them to expand their presence here, including the “tremendous” economic performance of the market, driven by an increased purchasing power from new industries and robust growth in small and medium
enterprises. Attractive lending rates have also fueled growth in the sector.
Car sales in the first two months this year went up by 42 percent year-on-year to 26,588 units, according to a joint report released by the Chamber of the Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association of the Philippines.
The commercial vehicle segment composed of all-utility vehicles, light commercial vehicles and trucks and buses posted a 31.6-percent increase in sales. The segment accounted for 72.47 percent of sales during the period.
The passenger car segment, on the other hand, posted a 69.6-percent year-on-year increase in sales to 8,740 units. The segment accounted for close to 33 percent of
total vehicle sales.
Honda Cars Philippines Inc.’s (HCPI) market share for the two-month period stood at 9.9 percent.
The company sold 1,372 units in January alone, compared to the 82 units sold in the same month last year. HCPI’s sales reached a total of 12,653 units last year.
Tatsuya Natsume, HCPI president and general manager, sees positive growth of Honda and the automotive industry this year, on the back of the recovery of Thailand and Japan, which were earlier hit by a tsunami and flood.
“The Philippine car market is growing despite the challenges encountered in the past years. The market was able to sold 180,000 units last year and we hope to reach or even exceed the 200,000 mark this year,” said Natsume. Campi said the country’s robust economy is a major driver behind the spike in local vehicles sales.
HCCI’s showroom is expected to be completed within the year. The company will officially launch the new facility by January 2014.
Tito Solomon, HCCI president, believes the new facility will allow them to attract new and loyal clients. “Competition in the market is going tougher but excellent customer service is going to be a key differentiator. The facility will not only help boost sales but would further expand customer satisfaction,” he said.
He added the company still has an extra area in the property which can be used for expansion. Honda vehicles sold by HCPI are the City, Jazz, Civic, Accord, CR-V, Odyssey and Pilot.