Local auto industry endures 2009 crisis

CEBU, Philippines - The “perceived” financial difficulties that hit the world has not affected the local sales of automobile in Cebu, as consumers continue to buy cars, which is now deemed a necessity more than just a luxury.

Brian L. Chua, president of both Subaru Cebu and Suzuki Auto Cebu companies said that while his companies expected a “daunting” performance at the start of 2009 due to recession, surprisingly sales turned out good even as early as first quarter of 2009.

Now, that the 2010 is expected as the gateway-year for recovery, Chua expects more people can afford to buy cars thus boosting the automobile retail industry in Cebu.

“We remain positive for 2010. Hopefully, the growth will be sustained,” Chua said in an interview.

Although there are still a good number of customers buying high-end or expensive cars, bulk of consumers are buying economy-cars like sedan and compact.

For Chua’s companies, an average of 300 to 500 cars are disposed a month. This number is expected to grow, as the economy recovers.

While some of the buyers are families of OFWs (Overseas Filipino Workers), Chua said a growing of local consumers are now able to afford to buy their own brand new cars.

In an earlier interview with Visayas Second Row Corporation, the dealer of Chinese brand,--Chery cars, it reported a brisk sales performance amid the global recession.

Raymund Basubas, Chery Cebu dealership marketing director, said that despite the economic difficulties, market for brand new car units in Cebu is still strong.

He said that the market is still active although the global economic recession has been affecting the sales of some giant manufacturers in the world.

“We come in the middle between second-hand and surplus car buyers,” he said emphasizing that Chery’s brand-new advantage comes as a “blessing in disguise” in this hard times as people are forced to get the best “value for money” offers.

According to Basubas, the brand although it is still starting to penetrate in the Philippines, has slowly gain penetration especially for the mainstream market, as the entry of Chery to the Philippines provides average-earners to own a car affordably.

Basubas said affordability and attractive financing offers is one of the best protections being implemented by the company to achieve growth, amid the weak consumer market.

“We are trying to come up with right packaging and attractive low-down-payment mechanism,” he said revealing that as low as P50 thousand downpayment for a P9 thousand (plus) monthly amortization, an average earner can already own a “brand-new car.” — Ehda M. Dagooc