Sunday, March 23, 2008

Influx of Chinese cars expected to drop overall vehicle pricing - Just don't let your kids lick the car

THE influx of cars manufactured in China in the Philippines is expected to pull down the prices of automobiles, especially Japanese brands.

The price tag of a Chinese manufactured car is the “true price,” said Raymond Tumao, chief operating officer of Iseway Motors Phils. Inc, the exclusive distributor of Chery cars from China.

Chery Automobile Co. was founded in 1997. It penetrated the Philippine market in May 2007 with 31 dealerships, 14 of which are already operating in key areas in the country.

“Japanese car brands are priced way too high. As soon as Chinese brands come in and people will be given alternatives, we expect prices of vehicles to go down,” said Tumao during the opening of the Chery showroom on March 15.

Other Chinese car brands that are expected to be introduced in the Philippines this year are Lifan, Foton, Chana, Kama, Jac and Chang An.

Tumao said he wants to organize Chinese car distributors so they can consolidate marketing efforts in the Philippines.

He said Chinese brands offer “affordability, utility and quality.”

Chery vehicle lineup includes sedans and sports utility vehicles with prices ranging from P360,000 to P850,000. It has introduced six types of car: Cowin, Eastar, QQ3, Tiggo, A5 and V5.

Seven years after it started, Chery had sold 189,100 cars with a total increase rate of 118 percent and had exported 18,000 cars.

In the Philippines, so far, Chery has closed corporate accounts. This year, it targets to sell 2,500 units.

Manufactured in China, Chery cars feature European technology and standards in automobile fabrication.

Tumao said Chery buyers will experience “excellent after sales service” and “cheap spare parts.”

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