Isuzu exec urges gov’t to offer incentives to small car users

Isuzu Philippines Corp. president Yoshifumi Komura said the government should also offer incentives to users of small cars if it really wants to promote the use of smaller, fuel-efficient automobiles.

According to Komura, it is not enough to give incentives to the automotive manufacturers to encourage the production of small cars with an engine displacement of less than 1000 cc.

"The government must also extend incentives to users.

In Japan, Komura said, the government extends such incentives as free parking, lower registration tax and lower road users tax to owners of small cars.

Trade and Industry Secretary Cesar V. Purisima is urging local automotive manufacturers to produce smaller cars that will be more fuel conservative and could provide an alternative to used vehicles.

Industry sources, however, said the Philippine market is not really keen on small cars.

In fact, based on Isuzu’s sales survey, most of the local auto manufacturers are already phasing out their cars with an engine displacement of 1300 cc and are instead concentrating on the 1500 to 1600 cc cars which are better sellers.

Isuzu, itself, is not interested in coming up with a small car, instead, according to Komura, Isuzu Philippines will continue to concentrate on its commercial vehicles and Asian utility vehicle.

In fact, Isuzu is putting all its effort in taking over the top spot in terms of commercial vehicle sales from current market leader Toyota.

Isuzu had earlier announced that it hopes to sell more than 10,000 units this year of various Isuzu models.

However, this year’s projected vehicle sales would be around 23 percent than last year’s total sales of 12,900 units.

The projected lower vehicle sales would be due to the higher prices of Isuzu vehicles, which have been adversely affected by the continued weakening of the peso against the dollar, the higher excise taxes on Asian Utility Vehicles and stiffer competition.

Isuzu holds the number 3 slot in terms of commercial vehicles sales.

Isuzu has been forced to raise its prices due to the currency differential and the higher excise taxes.

At present, Isuzu’s bestseller is its D-Max pick-up model.

For the period December 2003 to May 2004, Isuzu was number 1 in pick-up model sales and trucks of over two tons.