THE No. 4 auto player in the Philippines, Honda Cars Philippines Inc. (HCPI), is vying for a 30-percent increase in total vehicle sales this year, seeing Filipinos’ continuous appetite for cars, amid government discussions to increase the excise tax on automobiles.
“We’re targeting a total of 32,000 units this year overall. Last year we sold 24,000 units,” Louie C. Soriano, division head of the Administration Division at HCPI, said at the launch of the New Honda City on Monday.
Of the 13 models offered by HCPI to the local market, the Honda City takes the lion’s share with 30 percent to 40 percent of the total sales each year. With 24,000 units sold in fiscal year 2016, the City’s contribution was 8,200 units.
The Honda City is the auto company’s only locally produced model in the Philippines.
This year’s aggressive sales growth will be fueled by the continued demand for passenger vehicles, and possibly due to consumers preempting the spike in excise tax slated to take effect in 2019, pending the passage of the tax legislation.
Soriano said even with the expected surge in volume production of Japanese auto competitors Toyota and Mitsubishi, as recipients of the tax-relief support under the government’s Comprehensive Automotive Resurgence Strategy Program, Honda still expects to maintain their No. 4 spot in the market.
The company executive said HCPI may produce another model in the country, but that will depend on market demand.
The total auto industry registered sales of 123,064 units from January to April 2017, an 18.1- percent improvement over the same period last year.
HCPI took a 7.16-percent share of this total, or 8,813 units. This is an increase over Honda’s sales during the same period in 2016, of 7,450 units.
The New City is retaining its predecessors’ suggested retail prices at the following schedules:
1.5 E MT at P764,000; 1.5 E CVT at P804,000;
1.5 VX Navi CVT at P913,000; 1.5 VX+ Navi CVT at P1,003,000.