Volkswagen Philippines eyes double-digit growth in sales

MANILA, Philippines - Volkswagen Philippines is looking to post a double-digit growth in sales this year, aiming to bounce back after an emission test scandal that hit the German vehicle maker in the US last year.

John Philip Orbeta, the company’s country president and chief executive officer, said sales may rise by 40 percent this year from a “challenging” 2015, on which he did not disclose data.

Sales, were nonetheless “within target” last year despite the controversy that led to the resignation of the firm’s top official and similar probe on Volkswagen cars elsewhere.

“2015 has been challenging because of Volkswagen issue in America, but after a while, once the people learned that our vehicles here were not affected, sales recovered,” Orbeta told reporters.

“It was just a temporary pause,” he said.

This year, he said the 40-percent expected surge in sales would likely come from new product lines and upgrades that will be made available in their relatively new market in the country.

As its first offering this year, Volkswagen Philippines has already made available its new Jetta sedan in diesel and petrol automatic variants.

More are on the line, including the Golf Comfortline and Highline variants, the R-Line of the Passat and Touareg, and the return of Beetle Dune.

“You have to consider that we are just starting (in the Philippine market) so our base is still small and that is why our growth will be aggressive,” Orbeta explained.

“We are hopeful that sales will continue to grow, especially now that there are more and more Volkswagen vehicles being seen on the roads so there’s a lot more interest looking at Volkswagen as an option,” Orbeta said.

In particular, Orbeta said he is optimistic on the sales performance of the firm’s Polo and Jetta lines.

“I think at the end of the day, it is still our volume models which are the Polo and the Jetta. Those are the two at the more affordable price points in the market, which will continue to be our strongest models,” he pointed out.

Ayala Automotive Holdings Corp., the car distribution unit of the Ayala Group., is the distributor of Volkswagen in the Philippines. 

Volkswagen vehicles sold in the country are imported from Germany, Mexico and India.

Aside from these markets, Orbeta said Volkswagen Philippines is currently exploring other sources for vehicle imports.

“There’s a plant in the US that produces certain models. There are also plants in certain parts of the world like China. But at present, the agreement in China is what is produced in China stays there. We’re hoping they relax it,” he said.

With its current dealership network of four in the country, Orbeta said Volkswagen Philippines is also on the lookout for new areas to expand its presence across the country.

He said areas being explored are Pampanga and Cabanatuan for Central Luzon, Batangas and Laguna for Southern Luzon, Bacolod and Iloilo for Visayas, and Davao for Mindanao.