Isuzu not giving up hope of joining CARS program

Rappler.com

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Isuzu not giving up hope of joining CARS program
Lacking the volume necessary to join the new automotive incentives program, Isuzu hopes the government will eventually relax its requirements

MANILA, Philippines – Hampered by volume, Isuzu Philippines Corporation (IPC) hopes to take part in the next round of the Comprehensive Automotive Resiliency Strategy (CARS) program when requirements are loosened. 

The company is not qualified under current CARS provisions, said Art Balmadrid, vice president of IPC, but a provision in Executive Order 182 states the program will be subject for review that could open it to more players.

“We are not giving up, we are not losing hope,” Balmadrid said, adding that IPC would like to be part of an expanded CARS with one of its trucks as a possible model.

Meeting volume requirements, he explained, was the primary problem as CARS requires 200,000 units for the duration of the 6-year period.

This is no problem for volume manufacturers like Toyota which has already signaled its intent to enroll its compact Vios sedan in the new program.

For Isuzu and its truck and utility vehicle focused line-up though, volume can be quite challenging.

Balmadrid said IPC only sells an average of 20,000 per year for all its models, from Asian utility vehicles to midsize trucks.

Once the program is opened “the government will give other players a chance especially for trucks which are not high-volume. The market needs brand-new trucks,” Balmadrid said.

This year, IPC is confident of exceeding its initial target of 18,000 units and could even hit 20,000, compared to the 14,000 units it sold last year. IPC’s trucks on average have a 60% market share, he added.

Led by its sports utility vehicle the Mu-x which sold 5,000 units as of June, IPC sales stood at 10,000 as of the first half of 2015.

“In our total line-up, all except one is locally produced,” Balmadrid said. “Only the Mu-x is imported.” – Rappler.com

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