China cars pool efforts to penetrate RP market

Seeing so much growth potential in the country’s domestic automotive industry, China-made cars are slowly coming in the market to provide alternative options for new car buyers, a new car brand executive revealed in an interview.

Japanese car brands like Nissan, Honda, Toyota, Isuzu, and Mitsubishi among others have become household names in the country’s car market, but this time as result of free trade, more car companies from other countries are pursuing to penetrate the market like China cars.

Recently, a new car company called Chery Automobile has opened its first showroom in Cebu. In an interview, executives from this China-based company revealed that more China car brands are also trying to penetrate the Philippines.

These new car brands include: Geely, Lifan, Foton, Chana, Kama, Jac and Chang An.

Like Japanese car manufacturers who had since taken the lead in the country’s automotive sector, these car brands according to Raymond Tumao, of Iseway Motors, Phils., Inc. the country’s exclusive distributor for Chery cars, is also bent on pursuing to take an active role in the playing field and is out to prove that China made cars are also durable, quality and most of all affordable.

Stressing on the “affordable” value, Tumao said that China car brands will definitely address the country’s rampant problem on second hand car smuggling in the country as it will pose as a better alternative which most segments of the populace can afford.

“Our cars will be the Filipinos’ best way to own a vehicle at less than P400, 000. Our core competency is our cars’ “metallurgy,” which makes it adoptable to the countries conditions and climate,” said Tumao.

After successfully starting their operation in the Philippines last year after getting through tedious processes of acquiring several necessary permitting and accreditations, Chery cars have opened 14 dealerships nationwide.

And once other China car brands get to operate the county in these years to come, Tumao is looking forward to creating their own Chinese automotive manufacturers’ association that will be a separate entity from the Chamber of Automotive Manufacturers of the Philippines, Incorporated. (CAMPI) which he said is primarily ruled by Japanese manufacturers to whom they consider as their major competition.

Tumao also said that compared to established Japanese car brands in the market, new car brands like them are currently paying 30% custom’s duty taxes for the importation of their completely built-up units (CBUs).

“Right now Japanese manufacturers are controlling and monopolizing the domestic market and we want to change that. If other China brands start their operation in the country, we would want to consolidate our efforts with them to become an alternative for the vast majority of the populace. It will definitely be a tough ride against the Japanese brands so forming our own group might be a necessary step,” said Tumao.