Suzuki stays bullish of the Cebu market

Despite the big losses incurred by the international car players last year, a car dealer here in Cebu remains optimistic that this year will still provide growth opportunities for their company.

Suzuki Auto Cebu remains optimistic that the year 2009 will bring brighter prospect for their company especially that in the light of the global financial crisis, most motorists and car buyers are expected to prefer purchasing compact cars and other affordable units that are fuel efficient rather than luxurious vehicles with higher maintenance cost.

Deborah Sy Chua, Suzuki Auto Cebu general manager said in an interview that although they are expecting continuous down surge of growth and sales this year for the country’s auto sector, their company remains hopeful to achieve their usual sales target for 2009.

“In a previous dealer conference, auto dealers project that the year 2009 will be a slow year and there will be a small or no growth for the sector. But despite the crisis and the negative projection, we will always aim higher and we hope to maintain our average target,” said Chua. Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) on the other hand projects a two percent conservative growth prospect for this year after major foreign auto markets experienced large-scale downturn due to recessions caused by the recent global economic crisis.

Chua said that to address the foreseen negative effects of the looming global crisis, their company will continue to be more aggressive in their marketing campaigns which is also their way of attracting more customers.

To also manage the crisis, Chua said that one way is to explore new markets and currently, they have started to venture into Bohol through opening a showroom in Tagbilaran City.

Chua said that in the light of the glooming fiscal crisis, the industry experienced a so-called “credit crunch” because banks have started to tighten their lending capacities as they have become more careful in taking risks.

“The market are now having a hard time to lend from banks and with this, car sales have been affected and eventually it lead to a slowdown in the sector,” said Chua.

Chua recalled that in the fourth quarter of 2008, interest rates for car loans have started to increase which has become quite harder for customers to borrow loans and thus affecting their sales.

“Our walk-ins have decreased. Now they only inquire but they find it very difficult to decide to purchase because they are holding on to their money,” she added.

Other than the credit crunch, high oil prices have also affected the sales of auto dealers, said Chua.

But she discussed that the crisis has also resulted to an upward trend for compact units or smaller cars which are more affordable.

Chua said that their company has taken advantage of this upward trend because their Swift, Jimny and APV vehicle models with prices that collectively range from P400, 000 to P 1.6 million have been a hit last year and managed to sell many units.

She said that because of the positive take in of their compact units, they still managed to grow eight percent in 2008 despite the effects of the crisis in the second semester of the year.

“Customers have become more cost conscious. Sales for bigger cars have decreased because the market chose to buy smaller vehicles and multi-functional units that are cost efficient,” said Chua.

She revealed that this year, they aim to focus on providing vehicles that will address the needs of the market with a shrinking disposable income. — Rhia de Pablo