AUV sales seen to pick up dramatically this year

As the automotive industry slowly recovers from the Asian crisis, the demand for Asian utility vehicles (AUVs) is expected to pick up dramatically this year.

Automotive manufacturers said the shift in demand from passenger cars to commercial vehicles will become even more pronounced this year, especially with banks finally relaxing their financing charges.

Isuzu Philippines Corp., which introduced yesterday its 2000 model of the Hi-Lander, said the sale of commercial vehicles increased by 35 percent to 4,500 units in February to account for a commanding 66 percent of total industry sales.

Isuzu vice president Katsuhiko Kato said the strong start for commercial vehicles was fueled by the steady and huge contribution of the AUV class which was responsible for 40 percent of total CV sales.

According to Kato, AUV sales grew 20 percent in February and its share of the total market increased from 30 percent in 1999 to 32 percent during the first two months of 2000.

During the peak years of 1994 to 1996, Kato said the automotive industry grew 25 percent every year and AUV cornered 14 percent of total industry sales. When the foreign currency crisis hit, he said the AUV segment was the last to give in and even posted a seven-percent growth.

"In the succeeding years when the Asian economic crunch was at its peak, AUV share in the automotive industry doubled with a 22-percent growth in 1998 and 27 percent in 1999," Kato said. "It was during these years when Filipinos favored buying AUVs over cars."

According to Kato, the shift in demand saw the share of cars being pulled down from a high of almost 60 percent in the yearly 1990s to a low of 37 percent in 1999.

"Analyzing from the jumpstart in sales of January and February, AUV is looking good and right on track for another strong finish just like, if not better than last year," Kato said.

Kato said conditions are favorable for further growth in sales as the economy continues to recover from the crisis and banks compete to increase their portfolio by relaxing financing rates.

To take advantage of the attractive market prospects, Isuzu launched its new Hi-Lander 2000, tagged as one of the most popular AUVs in the market. Aimed at the younger segment of the market, the vehicle has a massive build pitched in by oversize fenders, lift-up body, bigger and wider tires.

The new Hi-Lander is equipped with a 2.5 liter, four-cylinder direct injection diesel engine. It is priced at P535,000 for the S variant, P565,000 for the SL, P600,000 for the SLX and P671,000 for the X-TRM.