Suzuki Phils may miss sales target

MANILA, Philippines - Japanese compact car and motorcycle manufacturer Suzuki Philippines, Inc. (SPH) said it will miss its yearend sales target of 4,500 units due to factory supply problems.

Speaking to reporters on the sidelines of the launch of the new Alto K10, Shuzo Hoshikura, general manager of the Automobile Sales & Marketing Division said it will be difficult to achieve the company’s original sales target. Instead, Hoshikura said they lowered their target to 4,000 units by yearend.

However, Hoshikura said that even if they will miss their sales target, there is still growth in sales especially when compared to last year’s performance. Suzuki sold 3,700 automobile units in 2010.

He said they are still experiencing factory supply problems for the seven automobile models sold here. These are imported from India and Japan. Hoshikura noted that they are experiencing some labor problems in their plants in India. When asked if Suzuki will build auto manufacturing plant here, he said they would need more domestic base before they can consider that.

Hoshikura said the twin disasters in Japan early this year has still some effects in supply. The supply problems were further compounded by the recent floods in Thailand, he noted.

Because of the supply constraints, Hoshikura said they have back orders and the waiting time for one vehicle can take as much as five months especially for their best seller the Celerio. This year Suzuki has already sold 1,500 units of Celerio.

For the Alto, Hoshikura said they sell 400 units per year. With the launch of the new Alto K10, he said they would like to sell 1,000 units next year.

“The Suzuki Alto, which we first introduced in 2007, is still one of our most popular cars primarily because of its fuel efficiency and unparalleled value for money. Globally, we have sold more than 10 million units of this model and in the Philippines, it remains to be the car of choice for many first time car buyers and corporations,” said Arvie Fugoso, Assistant marketing manager for the Automobile Sales and Marketing Division of Suzuki Philippines Inc.

“We are optimistic that with the introduction of this latest model, we will be strengthening our presence in the first time owner markets – be it the small families, the students and the young professionals,” Fugoso added.

Aside from the K10B engine, the new Suzuki Alto K10 comes with a 5speed manual transmission, electronic power steering (EPS), front power windows, power door locks, AM/FM CD, MP3 audio system with aux port, full wheel caps, seat belts for all passengers and an engine immobilizer system.