MANILA, Philippines — SMC Asia Car Distributors Corp., the importer, distributor, and service provider of BMW automobiles in the country, is looking to change its vehicle country source to hasten order time and make prices competitive amid higher taxes and foreign exchange rate.
SMC Asia Car president Maricar Parco said the company is planning to import BMW vehicles from Malaysia and Thailand instead of sourcing it from Germany and US.
“We have yet to hear from the regional office but yes, we are preparing to see how we can have synergies in the region so that we are able to bring in our products at more competitive pricing,” Parco said.
“Currently, BMW is being produced in Malaysia and Thailand. Malaysia is currently producing the cars and Thailand is currently producing the X series. All our cars today are coming from Germany and the US,” she said.
Parco said SMC Asia is still studying the rate differential should the company pursue plans to change its country import source.
Parco said the higher automobile excise tax that is a part of the government’s first tax reform package is among the considerations in the plans to import vehicles in the region to offset the price increases.
“The tax is a big factor. And right now it takes a very long time for us to source our cars so if I order today, it comes in six months. So we are able to respond to market demands faster if we are closer because the shipping time alone is three months,” she said.
“Other factors to consider is foreign exchange because the euro is up and the dollar is up. There are also price increases in the factories, so several factors to consider,” Parco added.
BMW previously had assembly operations in Bicutan in the 1990s.
Parco, however, earlier said a revival of a local assembly plant is still unlikely in the near term as economies of scale would not be able to support local assembly operations.
SMC Asia Car was formed last year as a new corporate vehicle for the distribution of BMW cars in the country following the entry of conglomerate San Miguel Corp.
“As being part of the San Miguel Group, we always have to be the leader in what we do. San Miguel is number one in everything. So we feel the growth will be driven by our partnership, by being under the San Miguel umbrella. This would only strengthen us further to be the leader in the Philippine market,” Parco said.
The company finished 2017 as the market leader in the passenger luxury segment with 1,350 units sold.