Local truck maker Centro sees strong sales in second semester

MANILA, Philippines - Truck body maker Centro Manufacturing Corp. expects sales in the second semester this year to remain high following a surge in the first half, a company official said.

Centro sales manager Vicente Belisario said they were able to expand sales by 50 percent in the first six months of 2010.

“As the commercial vehicle (CV) segment grew 40.5 percent and the total industry grew 36.6 percent, our sales grew by about 50 percent over last year. We believe our sales were also partly boosted by election-related purchases during the period,” he noted.

“But we also believe that the Philippine market has reached a level of maturity wherein consumers have now learned to trust product quality and after-sales service more than price considerations. They have started to shy away from imported used vehicles as they have learned that this is just a short-term fix with no long-lasting benefits,” he added.

He noted that consumers have also realized that Centro’s galvanized iron (GI) bodies are superior to those made of regular steel sheet as GI provides more protection against corrosion, thus extending the useful life of the vehicle.

Likewise, the recent issuance of Executive Order 877-A is a big boost to the industry, Belisario pointed out.

EO 877-A or the new comprehensive Motor Vehicle Development Plan specifically limits the importation of used vehicles to those not being manufactured or assembled by the local auto industry such as special purpose vehicles. Their importation shall require prior authorization to import from the Department of Trade and Industry.

“It also provides for export incentives to assist local parts makers break into the export market,” he said.