Honda Cars Philippines Inc. (HCPI) expects vehicle sales to grow by at least 10 percent this year to reach at least roughly 15,000 units, to be driven largely by the launching of new models in the local market and the establishment of new dealerships before yearend.
In a briefing yesterday, newly appointed president and general manager Toshio Kuwahara expressed bullishness on the Philippines, where they expect to post one of the biggest sales growths in the region.
“There will be a revitalization of the Honda brand as we will be growing the market and our volumes by bringing in more products that will be a hit [among Filipinos]. We plan to have new model launches this year, one of which will be for the all new Honda City, which we will launch after the Holy Week,” Kuwahara explained. “The new Honda City is expected to play a big role in our company sales.”
“We will keep you very busy this year. Expect new Honda models to be available in the market soon,” he added.
Apart from the Honda City, three model launches are expected, but it was not made clear whether these will be new models or upgrades of existing models. At present, HCPI offers eight models in its lineup, of which the City accounted for about 60 percent of the sales.
According to Kuwahara, there are no immediate plans yet to further ramp up the capacity of its facility in Sta. Rosa, Laguna, where it manufactures the Honda City. Capacity utilization remains at the manufacturing plant remained at about half as it produced only 7,615 units last year, while maximum output was pegged at about 15,000 Honda City units.
“[Additional] investments will depend on the Philippine economy and the automotive industry,” he said.
Plans to add a new model at the company’s manufacturing lineup will also depend on government support and incentives. Amy R. Remo