SALES of BMW, considered the top luxury vehicle in the country, could grow by double digit this year on the back of the introduction of new models and the Manila’s hosting of the Apec meet.
Asian Carmakers Corp. (ACC), the official distributor of BMW in the Philippines, said sales of the luxury vehicle continue to recover.
“BMW, year-over-year for the first four months of 2015, grew by 17 percent. We’re really on a recovery mode. In 2014 BMW grew 11 percent, which is faster than the luxury segment’s 9 percent for the same period,” said Maricar C. Parco, president of ACC.
Parco said the luxury segment of the automotive industry has been experiencing a slide in sales before 2014, due to a mix of tempered demand and high-income earners’ avoidance of extravagant spending. Since 2014, however, Parco said sales have gradually been picking up, as demand for compact cars, or sedans, has been on an upswing. The majority of BMW’s premium offerings are in this automotive segment.
As such, ACC is confident of sustaining the 17-percent growth or better for the year, given that new models will be introduced in the market this year, and its Apec vehicles are being snapped up quickly.
“We are launching new products this year, including the 2 series; and being the mobility partner for the Apec hosting, we have 200 cars ready to be resold to the market. We’ve already sold half of it, and there are reservations for half,” Parco said.
As a mobility partner chosen by the national government, BMW provided 200 of its luxury vehicles to high-ranking dignitaries of the Apec economies. BMW accounts for 35 percent of the luxury-car segment in the country. Other significant players in the premium-car division are Lexus, Mercedes-Benz and Audi.
Aside from the 2 series—BMW’s first multi-purpose vehicle offering in the country—other models slated for introduction this year are the BMW S6 and the brand’s flagship lineup, the 7 series. ACC said it is planning to source BMW motorcycles from Thailand to avail itself of the preferential 0-percent tariff for Asean-sourced imports.
“This is still a plan being discussed but if it happens, we’ll be more competitive in terms of pricing of our motorcycles. The tariff rate we have now, sourcing the motorcycles from Germany, is between 10 percent and 20 percent,” Parco said.
ACC is a wholly-owned Filipino company under the Alvarez Group of Companies, headed by its chairman, Jose Ch. Alvarez. It was appointed the official importer and service provider of BMWs in the country in 1999.