ISUZU Philippines Corp. (IPC) said sales would likely hit 19,000 units on the back of robust demand for the N Series and F Series trucks, exceeding its initial forecast of 18,000 units.
Despite the optimism, Joseph Bautista, head of marketing at IPC, said the company remains worried of the possible impact of the government’s plan to shift to Euro 4 engine standards. Bautista said industry players are seeking a two-year grace period for existing models assembled from completely knocked-down (CKD) kits until the end of 2017.
Most players would not be able to comply with the new standards, he told reporters on Thursday. Assemblers from CKD would be hit the worst since they still have the inventory and orders in the pipeline, he added.
We want a two-year grace period for existing models of CKD, Bautista said on the sidelines of the opening ceremonies of the 10th Truck Fest at the SMX Convention Center on May 28. IPC sales notched a 40-percent growth in the first four months of the year, sending optimism to exceed the initial target of 18,000 units.
That would have represented a 22-percent to 23-percent growth from 14,132 units sold in 2014. As of April this year, IPC already sold a total of 1,270 units of trucks and buses, a 42-percent increase from the same period last year.
“This indicates that IPC is on track to surpass the company’s total truck sales in 2014. For this year, the company is eyeing to sell at least 4,000 units of truck to maintain its position in the industry.
“Unfortunately, for the Philippines, a big chunk of the trucks that run every day are secondhand units—mostly repaired and converted,” IPC President Hajime Koso said.
He said the company is on a long-term campaign to promote brand-new trucks to promote road safety.
“The maintenance cost is a lot cheaper when you buy brand-new, plus it is also generally safer to use compared to secondhand trucks.”
Image credits: Alysa Salen