Isuzu Phils expects negative growth next year

Isuzu Philippines Corp. announced that for the first time in almost a decade, the company will post a negative growth next year due to the expected decline in demand due to the global economic crisis.

“This year we are on track to meet our target of selling 10,000 units. Next year it will be a little less than that,” Keiji Takeda, Isuzu president said in an interview at the sidelines of Monday night’s 2009 Alterra Launch.

Aside from the contraction of local sales, Takeda said they will no longer be exporting completely knocked down (CKD) units in Vietnam, their only overseas market.

“We will have no exports for next year because the Vietnamese market is slowing down,” he explained.

Exports is only three percent of the total revenues which translates to 300 units.

Takeda said they are considering exporting to other countries but there are no concrete plans yet.

According to Takeda, sales for 2009 will be approximately five percent less when compared to sales this year.

“The market is affected by the economy. We hope that we will see a recovery soon but at this moment I cannot think of anything good to say,” Takeda added.

In spite of the perceived slowdown, Takeda said they will not be laying off employees in their local plant.

Takeda estimated that almost 9,000 or 85 percent to 90 percent of the vehicles sold here are locally manufactured.

Isuzu is operating at excess capacity. Plant can produce 15,000 units per year.

At the same forum, Isuzu launched the 2009 Alterra.

Takeda said they expect to sell 900 units of Alterra this year and 1,000 units next year.

He said Isuzu presently accounts for 15 percent of the market. For next year, he said they would like to be number three in the market and increase their market share to 20 percent. Toyota’s Fortuner is number one while Mitsubishi’s Montero is number two.

 The 2009 Alterra is powered by 3.0 liter 4J1-TC common rail direct-injection diesel engine, which already meets Euro 3 emission standards.

 The Alterra is available for P1.54 million to P1.723 million.