More cars in Cebu soon

• Source:http://www.sunstar.com.ph/cebu/business/2016/05/23/more-cars-cebu-soon-475157
• Monday, May 23, 2016

By Jeandie O. Galolo

AS THE local economy continues to grow, car sales in Cebu are expected to follow the trail.

Mazda Philippines general manager for sales and marketing David Asuncion said car ownership locally and in the entire country will reflect the growth in the province and country’s economies.

In the first quarter of this year, the economy grew by 6.9 percent, one of the fastest in Asia. Historically, Central Visayas’ growth has surpassed the national figure. Car sales, meanwhile, are projected to reach 350,000 vehicles this year, amounting to a 12.9 percent growth from sales in 2015.

“As the economy grows, car buying will always have its place, and we see this continuing. The industry projects car sales to reach 500,000 in 2020,” Asuncion told Sun.Star Cebu at the sidelines of the grand launch of the redesigned Mazda showroom in Mabolo in Cebu City last Friday.

Attractive conditions

Last year, Mazda Philippines sold 4,000 cars, representing close to 50 percent growth from last year. Overall, it accounted for a 1.5 percent market share of the domestic auto industry.

Mazda Cebu contributes 10 percent of Mazda Philippines’ sales. Asuncion said this is higher than industry data, which showed that Cebu dealers contribute seven percent of national car sales figures.

The attractive, low interest bank rates for car loans have also created a rosy picture for car manufacturers, added Asuncion. The Philippines is the third fastest-growing automotive market in Southeast Asia.

According to the Asean Automotive Federation, Philippine vehicle sales last year rose 23 percent, while that of Singapore accelerated the fastest at 66 percent, followed by Vietnam at 57 percent.

Meanwhile, top automotive markets in the region, namely Indonesia, Thailand, and Malaysia, reported declines. These countries are already selling yearly one million, 800,000, and 600,000 car units, respectively.

“The momentum for the Philippine car industry is quite stable. If there will be disruptions, it will be because of global or regional influences,” Asuncion said.

For Mazda Philippines, the official said it will be adding another dealership, on top of the existing 17. In the Visayas, the brand has dealerships in Cebu and Iloilo.