JAC automobiles gaining ground in local market

MANILA, Philippines—Automobiles made in China are slowly creeping in the Philippine market. While AUVs and SUVs are lording it over the Philippine roads, utility vehicles are quietly making money, according to Joseph Lim Sy of the Mitsui Group of Companies.

Seeing that the market is responsive with this, JAC Automobile International Philippines Inc. becomes the flagship automotive business for Mitsui. Mitsui is now the exclusive distributor and assembler of Anhui Jiang Huai Automobile Co. (JAC), China’s leading automotive company with an annual production capacity of more than 200,000 vehicles.

“Filipinos have welcomed Chinese motor vehicles now,” Sy said. “By introducing these types of vehicles, they can now own brand-new vehicles at affordable prices instead of buying second-hand units.”

At present, JAC offers and assembles utility and multipurpose vehicles that cater to entrepreneurs especially the SMEs. Their flagship models for light trucks are JAC Princess, JAC Prince, JAC Queen and JAC King. JAC also has a 15-seater multipurpose van called Refine with a 2.8 L CRDi, Turbo intercooler engine from tied up with Isuzu Japan and has a fuel efficiency ratio of one liter per 16 kilometers. It also has 4 x 2 and 4 x 4 double cab pickup model called Stallion and passenger car lineup comprising a hatchback model, a sedan and a luxury sedan.

One of the major factors that make China-made automobiles attractive to consumers is its affordability. “They are 30-percent cheaper compared with the brand-new Japan-made vehicles and only 10 percent higher than used Japanese surplus,” Sy said.

Before focusing his business efforts to assembling and offering China-made automobiles, he was into Japanese surplus trucks and parts in the 1980s and even became a major supplier for Sarao Motors and other jeepney assemblers. He also went into the distribution of Korean vehicles and parts in the 1990s and even became the exclusive distributor of Korean SECO clutch cover and discs.

Around that time, Sy contemplated in sourcing brand-new Chinese vehicles as a replacement to the used Japanese vehicles. JAC averaged around 500 imported units from 2006. Last year, JAC visualized assembling vehicles here in the country and this year it is targeting from 800 to 1,000 vehicles.

“There is definitely a market for utility vehicles,” said Sy, “and we want to meet the demand of the clients by providing them with brand-new ones.” JAC sees that it would probably be much cheaper to assemble these vehicles here.

JAC had invested $8 million in participation with government’s Motor Vehicle Development Program (MVDP) and its assembly facility in Valenzuela has a capacity of producing 500 to 600 units a year and is employing about 100 workers. The company has a total of 10 showrooms and 20 service centers all over Metro Manila, Cavite, Baguio, Isabela, Cebu, Bacolod, Iloilo, Davao and Cagayan de Oro.

Sy partners with his wife, Rosita, in running the business. She serves as the executive vice president and the main implementor of his plans. She also oversees the financial position of the company.