Eastern Petroleum, GAZ Group team up to bring in Russia-made commercial vehicles

GAZelle minibuses and framed buses ready to roll out.

MANILA, Philippines — Eastern Petroleum Corp. and Moscow-based GAZ Group have teamed up to bring in Russian-made light commercial vehicles into the country, aiming to get a headstart in the government’s public utility vehicle (PUV) modernization program.

The distribution of Russian-made vehicles will coursed through GAZelle Motors Corp., a subsidiary of Eastern Petroleum targeting to sell at least 500 units within the first year, its chairman and CEO Fernando Martinez said during the launch late Thursday.

The units available include GAZelle NEXT minibuses and GAZelle NEXT Citiline framed buses, a range of light commercial vehicles combining high functionality, modern and eco-friendly technical solutions.

GAZelle NEXT Minibuses carries up to 17 passengers, which can serve as the platform for various specialized vehicles like PUVs, transport for disabled people, school buses, airport shuttles and executive corporative minibuses. Meanwhile, the GAZelle NEXT Citiline frame bus can carry up to 19 passengers.

Sales and after-sales service of GAZ vehicles will be provided by five dealer centers of GAZelle Motors in the Philippines and a network of 35 fully trained and accredited after-sales service centers throughout the country provided by local partner companies Rapide and Payless.

“We intend to have the first year at least 500,” Martinez said, noting the sales will be focused on transport groups and operators. We have the perfect opportunity to phase out more than 15 year-old PUVs,” he said.

GAZ Group SVP for sales and marketing Christian Kremer said this marks the first stage of the company’s entry into the Philippine market.

“The start of sales of multi-functional, reliable and eco-friendly GAZelle NEXT minibuses is the first stage of our entry to the Philippine market, which is interesting from both points of view – commercial sales and in terms of participation in a large-scale state program of public transport modernization,” he said.

The Philippine government’s PUV modernization program aims to modernize PUVs in the Philippines that will not only decongest the roads but will provide safer, cleaner, healthier and fuel-efficient transport system for Filipino commuters.

At the first stage, until 2023, more than 200,000 units – minibuses, medium and large buses – will be replaced by new buses, and more than 150 new bus routes will be launched. The key goal of the program is the full transport system modernization that should rely on reliable, safe and comfortable buses meeting the highest environmental standards.

Moving forward, GAZelle Motors is looking into the possibility of putting up an assembly plant once demand for the vehicles is sustained, Martinez said.

He said land is already secured in Cavite and Mindanao, and putting up the assembly plant is just a matter of time and permitting.

“We are coming out with models that will lower the price, including possible assembly here. We only need 2,000 units,” Martinez said.

The cooperation agreement between GAZ Group and Eastern Petroleum was signed in September 2017, both agreeing to supply the commercial vehicles to the country, as well as multi-functional, reliable and modern buses of the GAZelle NEXT family which fully meet the requirements of the Government’s Fleet Modernization Program.

“Finally, the Philippines will benefit from advanced technology from Russia with respect to reliable and competitively-priced vehicles. Thanks to the aggressive economic diplomacy of President Duterte with his historic visit to Russia, which paved the way for this partnership,” Martinez said.