Toyota seen adjusting prices due to weak demand

Toyota Motor Philippines Corp. may make some adjustments in their vehicle prices this year given the continuing slowdown in consumer demand, a company executive said.

In a telephone interview, Toyota Philippines vice president for corporate affairs Rommel T. Gutierrez said they are optimistic sales would stll grow but could not give a definite target for this year as the market remains uncertain due to the contraction in global consumer demand.

“We can’t really say how much we will grow. Right now what we can promise is that we will zero in on our after-sales service in order to cater to our customers better,” Gutierrez said.

However, he stressed there are no concrete plans yet and that targets are yet to be set.

He said market sentiment at present is inclined on more economical cars. “Now the preference is towards smaller cars. Not only are they cheaper but they are perceived to be more fuel efficient.”

Toyota has the Yaris model to cater to this market but, Gutierrez said the model was not able to perform as well as the other models they carry.

Last week, Toyota launched its new Corolla sedan that has a 2.0-liter engine displacement. The new variant, which is priced at P1.1 million, is imported from Thailand.

Given the behavior of the market, Gutierrez said they expect to sell only 10 units of the new Corolla per month.

For its other models, Toyota said they are looking at re-launching other models in order to boost sales. “There may be some minor changes,” Gutierrez said.

Meanwhile, in terms of exports, Gutierrez said shipments will not be lower than what they are already selling to countries like Argentina, other ASEAN countries, South America and South Africa.

Gutierrez said they still cannot disclose last year’s export figures but it is expected to surpass the 2007 exports of 700 million units.

Based on the yearend report of the Chamber of Automotive Manufacturers of Philippines Inc. (CAMPI), Toyota sold 45,915 units from January to December 2008 with a leading 36.9-percent market share.