Motoring Today Column

May 26, 2021

It's another good sign for the country's return to normalcy that auto makers and distributors are pursuing plans to expand their dealership networks.

This is true for both old established brands and newcomers.

Community quarantine restrictions forced upon communities and the economy due to the Covid-19 pandemic have not only direly affected vehicle sales but also stalled plans of many auto distributors to establish more dealerships across the country.

Even as the auto industry is learning to do business safely under pandemic conditions, automakers are preparing for the return to normalcy when they expect to sales to grow and competition to tighten.

Isuzu Signing

Isuzu Philippines Corporation (IPC) is among those pursuing plans to expand dealership networks.

IPC has signed an agreement with Velocity Motor Sales Corporation to establish a dealership in Subic.

Keeping with the times, a virtual signing ceremony was held to commemorate this new partnership that represents another step forward in IPC's "road to 50 dealerships."

Isuzu Subic will be IPCs 47th dealership.

In a press statement, IPC president Hajime Koso explained the significance of the move to Subic, saying: "We have been wanting to further establish our presence in Zambales so thank you to Velocity Motors for partnering with us in capturing the market and being part of our expansion project."

Subic is primed to become the most competitive international services and logistic center in Southeast Asia and Isuzu will provide the growing transportation requirements in Zambales most especially for trucks.

Meanwhile, Velocity Motors believes the partnership with Isuzu will spell success for both groups.

Said Velocity Motors president Jason Hao: "Isuzu is without a doubt the undisputed number one brand for trucks and equally successful in the SUV and Pickup segments. At Velocity Motors, we choose to invest only in the best and IPC is such in its circle of competence."

Geely Expanding

Another auto company continuing to expand its dealership network amid the pandemic is Sojitz G Auto Philippines (SGAP), local distributor of Geely vehicles.

The pandemic scuttled Geely's plan to open15 new dealerships in 2020 and another 15 in 2021.

But buoyed by relatively impressive sales of its offerings, theCoolray, Azkarra and the Okavango,SGAP announced that it has appointed new dealers inBacolod, Dagupan, Marilao, Bacolor, and Sumulong.

There are now 11 Geely dealerships nationwide. These are Geely North EDSA, Quezon Avenue, Makati, Baliwag, Cagayan de Oro, Imus, Cebu, General Santos, Davao, Lipa, and Zamboanga.

SGAP announced that 13 more dealerships will be added to its nationwide network. Soon too open are dealerships inIloilo, Pasay, Manila, Sta. Rosa, Angeles, Bacolod, and Dagupan.

Billed by SGAP as coming soon are dealerships inSan Fernando, Marikina, Las Pinas, Tacloban, and Taytay-Cainta.

Said SGAP president and CEO Mr. Yosuke Nishi: "We are taking a more aggressive approach in reaching out to more customers in the country this year as we keep up with our target network expansion schedules which were stalled by the long-standing global crisis."

Despite the difficulties brought on by the pandemic, SGAP believes Geely's arrived in the Philippines at the right time.

Said Nishi: "On the brighter side of things, I would like to believe that Geely was introduced in the Philippines at the right time, at a point where buyers are now demanding for more high tech and safety features in cars they wish to purchase yet still reasonably priced."

Sales Rebounding

Another good sign for the country's return to normalcy is the rise in vehicle sales.

The Association of Vehicle Importers and Distributors, Inc. (AVID) reports that its members sold a total of 20,353 units fromJanuary to April this year, a 40 percent increase from the 14,572 sold during the same period last year.

AVID reports that year-to-date sales in the passenger car segment rose 16 percent from 4,574 units sold last year to 5,328 this year.

January to April sales in the light commercial vehicle segment rose 44 percent from 9,906 units sold in 2020 to 14,314 units this year.

In reporting the year-to-date sales increase, AVID president Maria Fe Perez-Agudo said: "They say you cannot emerge from challenging times untransformed. With these encouraging figures, I say we at AVID have boldly transformed ourselves and have become even better at what we do, which is to provide our customers an end-to-end mobility experience that best suits the needs of the times."

Safer Commuting

Back in November of 2020, the Department of Transportation (DOTr) signed a memorandum of agreement with the SM Group for the contruction of concourses for the EDSA Busway.

This month groundbreaking rites were held signalling the start of construction of concourses for the EDSA Busway.

The DOTr said the EDSA Busway Concourse will provide more convenient and safer transport access for commuters, especially for senior citizens, persons with disabilities (PWDs), and pregnant women.

The concourses will have a provision for ticketing booths, Automatic Fare Collection System (AFCS) turnstiles, and concierge, the DOTr said, adding this will further boost the efficiency of the EDSA Busway.

The concourses are to be built at SM Mall of Asia inPasay City, SM Megamall inMandaluyong City, and SM North EDSA in Quezon City.

SM Prime Holdings Inc. president Jeffrey Lim said: ""SM has invested over P120 million for this project. We really aspire to provide a convenient, fast, and safe commuting experience for all Filipinos. The project is slated to start next month June 2021 and the target completion is within 10 months, so by the first quarter of 2022, we hope that everybody can already enjoy this convenient and pleasurable experience of commuting along EDSA."

NLEX Connector

Construction of the first five-kilometers of NLEX Connector is in full swing, according to Department of Public Works and Highways (DPWH) Secretary Mark A. Villar following an inspection of the project that aims to build an8-kilometer tollway connecting the heart of Manila to the North Luzon Expressway.

Villar said the project is now 35 percent complete with work on the elevated tollway now reaching Abad Santos Street and Blumentritt in Manila.

The DPWH said this new elevated expressway section is being constructed inside thePhilippine National Railways (PNR) tracks betweenHarbor Link-Caloocan Interchange alongC3 Road/5^th Ave. and España Blvd. in Sampaloc, Manila with on and off ramps in España Interchange, making the NLEX directly accessible to the heart of Manila.

The next 3-kilometer section between España Interchange and the vicinity of thePolytechnic University of the Philippines in Sta. Mesa, Manila will begin construction by next month.

"We are doing everything we can to accelerate the completion of this high impact expressway that will benefit the motoring public. The entire 8-km NLEX Connector is vital to ensure improved mobility within Metro Manila," said NLEX Corporation president and general manager J. Luigi L. Bautista.

Meanwhile, the NLEX has began charging the two to three percent increase in toll approved by the Toll Regulatory Board (TRB).

The TRB allowed NLEX to charge Class 1 vehicles an additional two pesos in the open system and an additional six pesos for the entire NLEX journey.

Happy Motoring!!!

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