By Kris M. Crismundo
MANILA, Jan. 10 (PNA) — As Volkswagen returned to the Philippine market, the German automaker targets to triple its sales in the country this year after reopening here in 2013.
John Philip S. Orbeta, President and chief executive of Ayala Group’s Automobile Central Enterprise, Inc. (ACEI), the official importer and distributor of Volkswagen cars in the Philippines, said the company had seen robust growth in the local market pushed by strong domestic economy.
Orbeta said that the declining fuel prices and increase in rail transportation fares would encourage the market to buy their own car.
Availability of attractive financing program would also make it easier for consumers to purchase their own car, according to Orbeta.
In its first year here, Volkswagen Philippines sold around 600 units. By end-2015, sales are seen to climb up to 2,000-level.
The ACEI president also said that the company also projects that sales by Volkswagen Philippines will hit up to 7,000 units by 2018, or five years after reopening here.
He said that Volkswagen was set to launch Golf and Passat models in the Philippines this year.
Moreover, Orbeta said Volkswagen was “always in the lookout” in putting up manufacturing plants around the world with priority of expanding in Southeast Asia.
“The priority for ASEAN is high,” he said adding that the Volkswagen is eyeing to put up a factory either in Indonesia or Thailand.
Volkswagen already has manufacturing plant in Malaysia.
Orbeta said the Philippines could attract investments in Volkswagen manufacturing plant if the government provides further support for the local automotive industry and even match the incentives given by Indonesia and Thailand to automaker investors.
Currently, the administration is completing the Comprehensive Automotive Resurgence Strategy (CARS) Program which aims to make the Philippines as auto manufacturing hub in the region.
Under the program, the government intends to allot a USD 600-million incentive fund for qualified investors in the industry.
Orbeta said that Volkswagen Philippines would continue to grow its sales volume and be a significant auto industry player in the local market in five years.
Meanwhile, the auto firm ended 2014 with five facilities in the Philippines with four showrooms located in Bonifacio Global City, Cebu, Quezon City and a satellite showroom in Alabang and one service center.
ACEI targets to open two showrooms this year.
“We plan adding two more showrooms every year,” Orbeta said. (PNA)