MANILA : August 14, 2008 - Strong competition from Chinese and Korean-made cars are expected to take its toll starting next year on industry leader Toyota Motor Philippines Corp. (TMPC), which sees slower growth of 3-5 percent in 2009 from this year’s growth target of close to 10 percent.



TMPC vice-president Danny Isla has admitted that China and Korea are making their presence felt in the local automotive market.

"We always welcome competition because it makes us work harder," Isla said.

The cheaper and smaller Chinese and Korean-made cars are becoming popular especially with the high cost of fuel.

"The market is shifting to low displacement engines and big sports utility vehicles now are affected," Isla said.

Hyundai Asia Resources, distributor of Korean vehicles, is already the fifth biggest car dealer in the country dislodging more established Japanese carmakers. Kia is another Korean car brand already in the country.

Chery, China’s biggest homegrown carmaker, is also making inroads with its more affordable and smaller car models.

Other Chinese cars to be introduced here are Lifan, Foton, Chana, Kama, Jac and Chang An.

While TMPC is sticking to its original 10 percent growth target or 48,000 units for this year, Isla said the company is targeting a modest growth of between 3 to 5 percent in 2009. In 2007, TMPC’s sales grew by 18 percent or 45,091 units from 38,258 units sold in 2006.

TMPC is not also expected to make major model launch this year except for Altis, which it launched earlier this year.

It will, however, launch upgrades of its three most popular models – Vios, Hi-Lux and Land Cruiser – during next week’s 2nd Philippine International Motorshow where it will also feature two concept vehicles -- A-BAT Concept Pick-up displayed at the 2008 North American Motorshow, and the Interactive Hybrid Synergy Drive.

A soft launch for its luxury model Lexus is scheduled in December this year, a prelude to a full launch in January, the following year.

But with a growing market, TMPC is still confident of maintaining its dominance locally. For the first half this year, the company’s sales hit 26,414 units or 10 percent higher than last year. TMPC also accounts for 36 percent of the local automotive market.

[Source : GASGOO]