Cebu’s auto dealership industry optimistic for economic rebound in 2021

MINERVA BC NEWMAN

CEBU CITY – Auto dealership industry in Cebu expressed optimism for an economic rebound this year with the opening of premier lifestyle showrooms of Toyota-Cebu and Ford Talisay, two of the biggest car dealerships in the country over this week amid the pandemic.

Toyota Mabolo opened its Premium Lifestyle Center at SM City Cebu, June 19 while Ford Philippines opened its 50^th dealership facility and showroom in Talisay City, Cebu on June 8 with both showrooms described as elevating the customer engagement and experience into a lifestyle of convenience.

Toyota Mabolo executive vice president Joseph Lo and Ford Talisay/Fairlane Automotive Ventures, Inc, (FAVI) general manager Andre Borromeo said that their decisions to open and expand auto dealership amid the pandemic signified the industry’s growing demand for cars as more and more Filipinos and families are encouraged to ride their own cars rather than take the public transport.

“We actually decided to open our showroom amidst the pandemic to inspire other businesses, other entrepreneurs to signify that this is the new normal we should get used to and they should also be opening their businesses as well, to keep the economy running and generate jobs,” Lo said during its media launching and opening of the Toyota Mabolo showroom.

Lo also expressed optimism of the company’s prospects next year especially that 2022 is an election year. The election will create economic activity not only in the auto industry but in other industries as well, he added.

“The pandemic has encouraged people and families to ride their own cars than taking the public transport.  This is a very good time to buy a car. We saw the industry went down in 2020 but the dealers didn’t just sit down, we aggressively mount promos for smaller cars, and we want people to buy cars,” Borromeo said in a briefing after the Media Showroom Tour last June 16.

Lo and Borromeo hope that the opening and expansion of Toyota and Ford here inspire not only the automotive industry but also all sectors to elevate the standards of customers’ access, convenience and buying lifestyle.

Both showrooms are packaged in a more luxurious and modern ‘new normal’ ambiance with customer lounging area, coffee shop and other facilities to engage and entice potential customers to get a car.

The Toyota Mabolo Premium Lifestyle Center at SM City has a floor-to-ceiling LED which is used for virtual presentation and simulation of new units; Coffee shop and GR Garage Kiosk for clients to get refreshments and score exclusive Toyota apparel, accessories and lifestyle items.  It also set up a 3000 square feet satellite complementing store.

The Ford Talisay showroom facility has a total floor area of 1,397 square meters that can accommodate a 7-car showroom display and 11 service bays with provision for future expansion.  It is a brand showroom running on solar with 80 percent of its electric consumption is taken from the sun while its Lahug showroom is complete solar.

 Sales performance for the auto dealership industry

The Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA) had disclosed earlier that the country’s automotive vehicle sales recovered in the first quarter of 2021 amid the global health and economic crisis.

According to CAMPI and TMA, vehicle sales from January to March this year posted an 8.9 percent increase compared to January and February 2020, which were pre-pandemic months.

“For 2021, we did pretty well from January all the way to May; not as good as (same period in) 2019, but we’re hopeful that we are on our way to economic recovery,” Mr. Lo said.

According to Yvonne Bala, Toyota Mabolo vehicle sales manager that the company posted 40 percent higher sales from January to May this year compared to last year.  However, sales were lower by 20 percent compared to the same period in 2019 which is not bad considering there is still a pandemic, Bala bared.

They expect increase in sales from the small and medium enterprises (SMEs) which will be acquiring service vehicles.  Models selling in 2020 were Toyota made ambulances, Vios, Wigo and the company released 150 units of Toyota Premium taxis, the first in the country, Bala added.

Borromeo on the other hand bared that Ford is on the path to recovery amid the pandemic and it is currently at the number 3 spot in terms of sales recovery with its top seller, the Ford Ranger. The vehicle market is a combination of smaller vehicle and the 4-wheel drive. 

Borromeo added that the opening of Ford Talisay is a testament to the growing preference towards the Ford brand and its growing vehicle portfolio and after-sales offerings and he is looking forward to serving the automotive needs of more Cebuanos with Ford Talisay dealership.

 The Toyota Mabolo Premium Lifestyle Center provides a unique concept. “We’re not just selling cars but elevating the lifestyle of every Cebuano. It’s a different kind of experience when you are there, A First in the auto industry” Lo said.

Toyota will soon be showcasing long awaited new models this year such as the all-new Land Cruiser 300 and the GR Yaris, Lo bared but its priority is to push the sales for Philippine manufactured vehicles like the Vios and Innova to help generate jobs for fellow Filipinos.