Upmarket Economy

The spiraling fuel prices are driving motorists around the world towards vehicles that are either more fuel-efficient or ones that use alternative fuels. For countries like ours where the infrastructure for alternative fuels exists only in rhetoric, we have only one choice: to shift to more economical vehicles that are not only miserly with fuel but affordable as well.

The entry of Chinese automobiles into the country has afforded Filipino buyers another choice. While these vehicles are priced affordably and promise excellent fuel economy with their small engines, many car buyers are wary of the aftermarket service and support, especially with the unknown reputation of some of the distributors of these Chinese-made vehicles.

Upmarket Company

One company is set to change all that: Focus Ventures, Inc. – the distributor of Chana automobiles and FAW trucks in the Philippines.

Stephen Sy is the president of Focus Ventures.  A graduate of the University of the Philippines and Stanford University, Stephen is used to the upmarket lifestyle. Before venturing into automobiles, Stephen’s business centered on upmarket home furnishings, appliances and equipment of high caliber brands.  This is one of the reasons why they’re marketing Chana and FAW as upmarket Chinese brands.

“We are not aiming to compete against other Chinese automobile brands in the country,” explained Stephen, “Because there is no competition. Our cars are more upmarket because we have much better cars.” Stephen and his business partner, Heng Dong Lim, who has been doing business with Chinese and Thai manufacturers for a long time, looked into vehicles made in China and decided to import only the best brands and the more appropriate models into the Philippines.

Chana and FAW

Chana automobiles are manufactured by Changan Automobile (Group) Company, Ltd. in Chongqing City, China. Founded in 1862, Changan is one of only five car manufacturers in China that are given key support by the Chinese State. It employs a 28,000-strong workforce with three production bases in Southwest China, East China and North China and over ten automobile manufacturing enterprises with international strategic cooperation partners Suzuki, Mazda and Ford. With total assets of more than 30 Billion RMB, Changan has a production capacity of one million automobiles and one million engines and targets a capacity of 105 million units by 2010.  Clearly, Changan is one of the most valuable internally-developed brands in China’s automobile industry.

FAW Trucks, on the other hand, are the best diesel trucks in China. Under the rules of the Chinese Communist State, the title “Number 1” or “First” is reserved for the biggest manufacturing firm in its category and is often given preferential support by the government. Thus, First Automotive Works or FAW, which partnered with Toyota, Volkswagen and Audi, is the biggest truck manufacturer in China, producing 1.4 million units in 2007.

Customer Oriented Strategies

Unlike lesser distributors of Chinese automobiles in the Philippines, Focus Ventures subjected their Chana and FAW vehicles to a battery of road tests and thorough evaluation before marketing it to Filipino car buyers. “Our first vehicles arrived in November 2007 and we subjected them to six grueling months of local driving conditions, which are a lot different than the driving conditions in China,” stated Stephen. “Our test drivers logged thousands of kilometers on our test units because we wanted to know the durability of the vehicles and we wanted to see which part would not be appropriate or durable enough for the local road conditions.

“We invested in a new and spacious showroom and service center at Sheridan Street in Mandaluyong because we’d like to show our customers that we’re in for the long haul and that we’re here for them. All told, we’d like to build a favorable word-of-mouth reputation.”

Equitable Relationships

Focus Ventures is also marketing the Chana automobiles and FAW trucks with a clear aim of building an equitable relationship between the distributor and their dealers. “We have set up our provincial dealers in Luzon, Visayas, and Mindanao. We established our distribution center at the new showroom and service center in Mandaluyong before we appointed Metro Manila dealers so we can accurately map out their respective areas and avoid potential overlapping of territories. We even constructed a full-service dealership with 14 work bays and a temperature- and moisture controlled oven paint booth to service the repair and maintenance needs of all Chana and FAW customers.”

The forward-thinking president added, “We are building our network of dealers and we’d like them to be happy not only with the Chana and FAW products but with their operations as well.  After all, the dealers are our customers and the car buyers are their customers as well as ours.  If our customers are happy, then their customers will be happy and the customer satisfaction with our products will be high.  Again, this aligns with our goal to build a good reputation from word-of-mouth testimonies.”

Simplified Inventory

“With our Chana model line-up, for example, our dealers will have no need for an overly large warehouse or an extremely complicated inventory system,” boasted Stephen. His confidence stands from the fact that of the twelve Chana models, eleven are powered by the same engine – a Euro 3-compliant 1.3-liter inline 4-cylinder with 16 valves, overhead cam (OHC), computerized electronic fuel injection (EFI) and a power output of 84hp. This engine is mated to either a 5-speed manual transmission or an automatic transmission, which is not immediately available from other locally-available Chinese automobiles. The other available engine, a 1000cc four-cylinder, is likewise equipped with computerized EFI.

“Having a single engine power several models negates the need to stock up on parts for different engine models,” explained Stephen. “Thus, we are also looking at an economical operation for the distributorship and our dealers in terms of inventory, warehousing, servicing equipment and manpower training. The savings are transmitted to our customers through the affordable prices of our cars, spare parts and services. The bottom line is that we’ve planned everything, from the product line to the aftermarket service support, towards satisfying our customers.”

Chana Mini-Trucks

“We have a wide range of automotive products, from mini-trucks to mini-vans and passenger cars, that can fit our customers’ needs,” stated Danica Tuliao, Focus Ventures’ brand manager. “Of course, for transporting heavy cargo, we recommend the FAW line of tough diesel trucks but for light loads, we recommend the Chana Multi-Carry model line-up. These tough little trucks come with a 1-year or 20,000-kilometer warranty and are suited for these trying times of tight spaces, gridlock traffic and high gas prices.”

For entrepreneurs who are just starting their business, there’s the Chana Multi-Carry I Single Cab which is powered by an economical 1.0-liter inline-4 gas engine with 8 valves, OHC, EFI, produces 53hp and is Euro 3-compliant. At P245,000, this vehicle comes with a 5-speed manual transmission, a radio with 2 speakers, front and rear fog lamps and a payload capacity of 610 kilograms.  Stepping up to a Chana Multi-Carry II Single Cab at P348,000, the buyer gets the abovementioned 84hp1.3-liter 16-valve engine, a bigger and taller cab and a payload capacity of 800kg.

For businessmen who are looking for economical vehicles to transport goods and personnel, there’s the P420,000 Chana Multi-Carry II Double Cab with Pickup Body and the P435,000 Chana Multi-Carry III Double Cab with Drop-side Body. Both vehicles come with a 1.3-liter engine, air-conditioning, radio, fog lamps and a payload capacity of 500 kilograms. For transport needs that include multi-purpose seating capacity for 6 to 10 passengers, there’s the Chana Rainbow which is priced at P435,000. For light cargo that requires weather protection, the Chana Multi-Carry II Closed Van with a payload capacity of 500kg is ideal at P378,000 while a Chana Multi-Carry II Refrigerated Van is also available at P448,000.

Chana Mini Passenger Vans

For motorists with a need for transporting passengers and their attendant necessities, Chana offers three mini-van models. The Chana Starlight begins the model range at P450,000 and comes with the 1.3-liter engine, manual transmission, 7-seats, dual aircon, 5-spoke aluminum wheels, a radio with 2 speakers, front and rear fog lamps and a 5-door body. The Chana Star II comes with the same specifications and same price but features sliding doors on both sides for even more convenient ingress and egress of passengers or easier loading of cargo.

At the top of the mini-van line is the Chana CM8. This stylish minivan has the design cues of a European minivan and features the Euro 3-compliant 84-horsepower 1.3-liter engine, manual transmission, comfortable seating for seven passengers, dual sliding doors, dual aircon, 5-spoke aluminum wheels, a CD radio with 4 speakers, front and rear fog lamps and a P495,000 price tag. The mini passenger vans also come with 3-year or 100,000-kilometer warranties. Large families looking for a stylish and fuel-efficient transporter should look no further.

Chana Benni De Luxe MT and AT

Stephen Sy admits that the Chana Benni De Luxe is priced more than other Chinese compact cars but he insists that it is clearly in a class of its own. “Admittedly, our Chana Benni De Luxe is over-spec,” Stephen said referring to the vehicle’s features. “Its 1300cc engine is obviously bigger and more powerful than the 800cc and 1100cc motors of other compact cars but even though it boasts of a bigger engine displacement, it is far more economical to operate. The fuel mileage of its 1.3-liter engine is rated by Changan Automobiles at 22 kilometers per liter but our testing in local road conditions, which includes Metro Manila traffic and slow driving speeds due to rough surfaces and road works, netted us an average of 16 kilometers per liter, which is more realistic than the fantastic claims of other manufacturers.”

Besides the outstanding fuel economy, the Chana Benni De Luxe boasts of features that are not available with other locally-available Chinese cars, or even Japanese and Korean compact cars. The Benni features airbag protection, anti-lock braking system (ABS), and engine anti-theft immobilizer, which is uncommon in its class, in addition to the power-steering, power windows and front and rear fog lamps that are extra costs option in other brands. Buyers also have a choice between the Chana Benni De Luxe with Manual Transmission at P438,000 and with Automatic Transmission at P495,000. The Benni comes with a 3-year or 100,000-kilometer warranty.

It’s About Time

Overall, it’s quite impressive how Focus Ventures would like to market Chana automobiles and the FAW trucks. “Like I said at the start, we’re a much better car company than the other China brands in the Philippines,” the confident president of Focus Venture reiterated. “Our Chinese manufacturer is older, respected, more experienced and is supported by the state government especially with China’s role in the growing global market. To prove the reliability of Chana cars, Changan even subjected their cars to a tough 86-day 26,000-kilometer endurance run from Chongqing to Johannesburg, South Africa, passing through tough terrain and changing weather conditions over 12 countries including Pakistan, Dubai, Oman, Yemen, Djibouti, Ethiopia, Kenya, Tanzania, Zambia, and Botswana.”

He added, “In the ‘70s, Japanese car had a difficult time competing with American and European brands but by the later part of the decade, their acceptance in the global market became felt.  In the late ‘80s and the early ‘90s, Korean cars were being dismissed as cheap and unreliable, but look at where they are now. We believe that with the current state of technological advancement and the ever increasing prices of fuel and raw materials, the acceptance of Chinese cars in the world market will only be a matter of time. We also believe that it’s about time for Filipino car buyers to have another choice in automobiles during these challenging economic times.  Chana automobiles and FAW trucks are clearly the better choices.”

Chana Automobiles and FAW Trucks are available at Chana FAW Showroom, Sheridan Street near Pioneer Street, Mandaluyong City. For inquiries, please call 631-0298 or email [email protected].