By Bernie Cahiles-Magkilat
Volkswagen Philippines (VW) has set a robust growth tariff of at least 50 percent this year amid a lingering downturn in the local motor vehicle industry.
Volkswagen logo / Manila Bulletin file photo
At a formal press presentation of Felipe Estrella III as the president of Volkswagen Philippines, the new leader of the Ayala-owned car company told reporters that the decline in sales in the overall motor vehicle industry in January this year was a carry-over effect of the slump experienced in 2018. But he expects sales to recover within the first quarter this year.
“We aim to better our 2018 sales by at least 50 percent. And I am confident we can achieve this. We have the five new distinctive models, the after-sales services and warranties, and we plan to expand our current network of 8 dealerships by adding at least four more,” Estrella said.
Despite an industry-wide sales dip of 15 percent in 2018, Volkswagen sold a total of 1,363 units in 2018, a flat growth from 2017.
Growth this year would be driven by its 5 models, which he said, would be attractive enough for Filipinos to consider its VW product lineup. Its volume model is Santana, which accounts for 30 percent of its total sales.
The Santana sedan and GTS models were the best-selling vehicles in 2018 accounting for 33 percent of its total sales. It is also very accessible at a retail price of just P686,000 only. Lamando is its most high-end model that should compete against Camry and Accord but at a more competitive with its top of the line selling at P1.7 million only. Other models include Lavida and Tiguan.
Estrella said that its products cater to a wide range market segments and demographic at very competitive price. There vehicles are equipped with features and amenities that are not offered by their competitors.
To further support growth, Estrella said they are also going to launch 2 sports utility vehicle models this year to further beef up its product offering.
In addition, the company is strengthening its distributorship presence with at least 4 outlets this year to it existing four. It’s 9th dealership will open in Sta. Rosa, Laguna.
The company has also implemented after sales services and warranties that made owning a German marque as worry-free and convenient as possible.
“We now offer 3-year warranties for every model, while keeping periodic maintenance service intervals of only once a year or every 10,000 kilometers, whichever comes first,” said Estrella.