THE FIRST half of 2015 has seen a massive growth for the local automotive industry.
Chamber of Automobile Manufacturers of the Philippines Inc. reports a 21-percent sales increase in the same period versus the previous 2014 fiscal year.
If we look at this growth figure, that means that on the strength of the first half of 2015 alone, the Philippine automotive industry will be close to nudging the 300,000 units sold even with no increase in sales for the second half of 2016.
What are the factors driving this growth?
Economic stability is the most obvious. The per capita income of the Philippines is close to $3,000 per annum. Historically, every country in the world that hit this mark witnessed mass motorization.
Secondly, favorable interest rates from a solid financial/banking industry has given more people access to capital and loans.
Lastly, it is the cars themselves that have spurred this industry growth. The local market has evolved, is becoming more sophisticated, has the savvy to know and understand its specific needs, and has more disposable income for a second or even third car.
The once-established segments in the industry have been shrinking, replaced by a more specialized niche segment.
The Philippine automotive industry is at a golden age. It’s easy to buy a new car and we are spoilt for choice, from the entry-level range all the way to exotics and sports cars.
We checked out the newest releases in the automotive industry launched during the first half, as well as upcoming models which will break cover through the rest of the year up to the first quarter of 2016.
Pickup wars
NPI PRESIDENT Toti Zara (right) and marketing head SJ Huh with the Navara fleet
Leading the charge is the pickup segment. Nissan’s Navara fired the first salvo, releasing the all-new NP300 Navara along with Mitsubishi’s all-new Strada pickup.
The Navara boasts of a very wide model range to suit as many budgets and intended market needs. It has a revolutionary independent rear-suspension which blesses it with the best ride and comfort in the pickup segment without compromising load-carrying capacity or offroad performance.
Mitsubishi’s Strada builds on its strengths, having grown slightly in all directions. Crucially, it has a much larger pickup bed, an improvement due to complaints over the previous generation.
Chevrolet has just released a new variant of its Colorado pickup called the Tracker Edition. It comes with a two-inch lifted suspension for an added 50 mm of ground clearance, putting it well into 800-mm-plus fording depth, an integrated 12,000-pound winch kit, skid plate, a snorkel for even more adventurous river crossings, and more gadgets.
Its key rival, the updated Ford Ranger, was recently released, featuring electronic power steering, a first for pickups, dual TFT display similar to the Explorer SUV, and many other features normally found in cars, making the Ranger an easier animal to live with everyday.
Not that it has hampered sales, as the Ranger has led the segment in sales consistently over the past few years.
Its twin, the updated BT-50 from Mazda, is also set to release a refreshed and updated version within the next 12 to 18 months.
But the one pickup everybody was waiting for is Toyota’s all-new Hilux. Over a decade ago when the Hilux was launched, the pickup was transformed from an agricultural/industrial-based workhorse to a lifestyle vehicle, a pattern that all other pickup trucks followed suit.
The Hilux is currently being tested by selected members of the media, VIP clients, dealers, suppliers and some Toyota-affiliated car clubs as you read this article.
Finally, pickups are a proper status symbol: They don’t denote your financial bracket, but rather identify you through your lifestyle choices.
Sport utility vehicles
Kia’s all-new Sorento and Ford’s highly anticipated all-new Everest were the first to roll out their big guns for 2015, with the Everest making a splashy (literally!) launch a few months back.
Ford also recently launched a new Expedition full-size SUV variant called the Platonum Edition, which has been updated and is more luxurious to keep it relevant in an ever-growing sea of premium SUVs.
Toyota’s Land Cruiser, a favorite amongst the well-heeled public is scheduled to get a facelift later in the year or early 2016.
Photos by Ardie Lopez
Porsche’s Cayenne, with improved and more efficient engines and aerodynamics plus visual tweaks to the exterior, has been launched quietly by Porsche Philippines to a loyal-customer base.
Despite being very costly, demand for these two premium SUVs remains very strong and is constantly oversubscribed.
Still in the premium SUV segment, Land Rover’s highly anticipated Discovery Sport compact SUV will be released anytime soon to the local market, featuring the most technologically advanced offroad active assistance software dubbed Terrain Response Management System.
And yes, it’s a proper Land Rover, which means impressive offroad ability partnered with impressive onroad performance.
Not to be outdone, BMW will soon be launching the all-new BMX X6 sport activity vehicle in the next few months, taking the fight to Audi’s upcoming all-new Q7, Porsche’s updated Cayenne, Merc’s ML, Range Rover Sport, and Lexus’ LX.
Mercedes-Benz has two new offerings in this segment as well: the GLE which replaces the ML nomenclature but with visual tweaks and updates, and the GLC which replaces the GLK, both in nomenclature and as an all-new model, ready to duke it out with the Audi Q5, Porsche Macan and Lexus RX350.
But 2016 is shaping up to be the year of the pickup-based SUVs.
Toyota’s Fortuner was launched globally just a few weeks earlier, and sources say it will make it to Philippine shores towards the middle of 2016, around the same time Mitsubishi’s all-new Montero Sport will also be unveiled, which we expect to be officially unveiled to the global market in time for this year’s 2015 Tokyo Motor Show in October.
And what of Nissan’s Navara-based SUV? Nissan remains tight-lipped, but Internet stories persist that Nissan has already begun testing its new SUV, building up on the Navara already in Thailand.
The SUV segment is among the top 3 in the industry. A healthy showing in this segment is a good index of how the rest of the automotive industry will be performing.
A famous nameplate that has made is return is Honda’s HR-V. From a curious-looking boxy compact crossover, the second-generation HR-V is now more hip and stylish, as well as supremely comfortable, spacious and refined, hiding its massive exterior thanks to a smart and shapely exterior silhouette.
Another player joining this segment is Peugeot’s 2008, which will be launched to the public next week.
The 2008 is a small cross-over vehicle from the French carmaker, powered by a 1.6-liter gasoline engine driving the front wheels via an automatic transmission.
It’s a niche soft-roader vehicle joining the new small cross-over segment alongside the likes of Subaru’s XV, Ford’s EcoSport, and of course the Honda HR-V.
These all-terrain, all-weather workhorses now have far more excitement built into them.
Executive sedans
The Executive Sedan segment has traditionally been a shrinking segment since the growth in popularity of the pickup-based SUVs.
Seasonal monsoon rains which bring massive flash flooding have further eaten into the sedan segment, whisking buyers into tall-riding SUVs and pickups since 2010.
But the executive sedan segment has been enjoying a resurgence of sorts, thanks to the introduction of new and stylish models and with crude oil prices having been on a slight downward trend starting late last year until today.
THE INTERIOR of the Hyundai Sonata is perfect for an intimate evening date.
Hyundai was first to unveil its all-new Sonata at the very tail-end of 2014. Improved build-quality was Hyundai’s biggest promise, backed by an eight-year warranty, the longest in the country.
The Sonata also grew bigger and more stately, with improved ride comfort, handling and overall refinement.
Then came the surprise launch of Toyota’s Camry with a new model, unveiled earlier this year, that astonished the market, considering the previous model was still selling well and also still looked new and modern.
Toyota has never been one to rest on its laurels, hence the quick introduction of a new and improved model.
Mazda’s 6 revolutionized the sedan segment with its sexy lines and SkyActiv technology, and the introduction of its estate/station wagon variant this year alongside an updated 6 sedan wowed the market, translating its stylish lines from a sedan to an equally stylish station wagon body.
Subaru’s Legacy also broke cover this year. It lost its EJ257-based turbocharged engine, gaining a new FB20 boxer without turbocharger alongside a flat-six cylinder engine variant more in tune with the Camry’s, Accord’s and Maxima’s V6.
But the Legacy has also become more mainstream, more refined, more comfortable. And yet it is still the most driver-focused and most engaging car to drive in this segment, trailed closely by the Mazda 6.
This segment also has two sub-niche models: Subaru’s Outback, and the upcoming Volkswagen Passat.
The Outback is essentially a Legacy morphed into a cross-over, featuring a raised ride height that allows for much better mild offroad excursions and flash flood crossings on a wagon/estate body.
The Passat is an in-between sized vehicle: it’s bigger than a Toyota Altis or a Honda Civic, but not quite the same size as a Toyota Camry or a Honda Accord.
It will be German-built, and will sport a 2-liter, four-cylinder turbocharged TFSI engine, and hopefully, a dual-clutch transmission which should make it appealing to the more driver-focused buyers in this segment.
The smaller size, along with German engineering, means the Passat will be a sharp, cracking drive. Just because you’re driving a big executive express doesn’t mean it can’t be sexy.
Making waves
Further upmarket in the luxury sedan segment, Jaguar Land-Rover has been making waves.
The all-new Jaguar XE is being touted as a real serious competitor to the BMW 3-Series, Merc C-Class and Audi A4 German brigade, and might even give the Lexus IS350 a run for its money with impressive handling, refinement and driver connectivity.
The larger XF sedan, debuting later this year to the global motoring media and competing against the BMW 5-Series, Merc E-Class, Audi A6 and Lexus GS, might reach our shores early in 2016.
Finally, the updated Audi A6 and A7 sedans have just landed, and are for the first time made available with a factory-fitted GPS/SatNav system for fans of the four rings.
These are shown with minor visual tweaks to keep them fresh even late into their product lifecycle.
At the very top is the Mercedes-Maybach sedan which Cats Motors will be bringing in a few months. This is essentially a new sub-brand for Mercedes-Benz alongside Mercedes AMG, and the focus is ultraluxury.
Featuring an almost 8-inch longer wheelbase, the Mercedes-Maybach S Class (available in S400 six-cylinder, S550 bent eight, and S600 V12) will take the fight to Rolls-Royce and Bentley.
Also breaking cover is the sixth-generation G11/G12 BMW 7-Series, an all-new design under BMW’s CLAR (Cluster Architecture) platform, its new highly adaptable platform for mid-size and larger RWD vehicles, as well as BMW’s X-Series range.
The 7-Series comes out ahead of Audi’s next generation A8, which is scheduled to be unveiled later at this year’s Frankfurt Motorshow, and the rumored up-market Jaguar XJ later next year.
Compact segment
Another segment that has been losing market share slowly over the years is the compact sedan segment. But the arrival of new models from new brands will help spur interest once again and breathe new life in this segment.
Volkswagen’s Golf is perhaps the most anticipated model launch this year in this segment.
It’s not exactly a mass-market model (thanks to taxes), but the Golf is arguably all the features anyone will ever need: heritage, pedigree, practicality and convenience, and, crucially, impressive performance with solid German engineering.
A POLISHED look outside and ample space inside
On the other end of the spectrum, the Kia Forte, long available but in very small numbers, has finally been given a proper launch, and is the only compact car available in three body styles: four-door sedan, five-door hatchback, and two-door coupe.
Need more exclusivity in a small car? BMW has the answer for you: the updated BMW 1-Series which has gained some minor aesthetic changes; and the 2-Series coupe, which is essentially the BMW 1-Series in two-door trim under BMW’s revised model range rationalization.
This surprisingly competitive segment comprises the Audi A1/A3, Merc A-Class CLA, Lexus CT200h and Mini’s Cooper range.
If you thought this segment was boring, then stretch your budget a bit and look beyond the usual Japanese suspects and into German or Korean territory.
If you’re looking at the premium end of this segment, now’s a good time to enjoy refinement and luxury while enjoying a fun, zippy drive that’s also very fuel-efficient.
This is another segment that has been helping the Philippine auto industry propel to new heights, and allowing the average Juan to be motorized and mobile.
The facelifted Kia Picanto has recently been introduced, and the all-new second-generation Mazda 2 will be unveiled by the time you read this article as well, alongside the Toyota Hilux, to the motoring media at different venues.
Another small Kia, the facelifted Rio, was also recently unveiled to the motoring public. Even if you’re a first-time car buyer, there’s a lot of exciting new cars to look to in this segment.
MPVs and vans
For the last two to three years, many industry insiders felt that the MPV segment was the next growth sector in the industry. It hasn’t performed as well as many had hoped, with only Toyota’s all-conquering Innova making waves.
Nonetheless, a variety of new entrants in this segment means that the writing in on the wall: MPVs will be here to stay, much like in Europe and in the United States with their minivans.
Toyota’s executive first-class MPV, the Alphard, is an all-new model that’s bigger, roomier and more refined.
Honda, on the other hand, unveiled their Japan-market-spec Odyssey, which is smaller and more suited to Asian roads than the previous US-marketed Odyssey.
It comes with a smaller four-cylinder 2.4-liter Earth Dreams engine but mated to a CVT transmission. Immediately after the Odyssey launch, Honda also unveiled its compact MPV Mobilio, which shares parts with Honda’s Jazz and City.
This has been a radical departure for Honda which is slowly coming to grips with the unique Asean market needs. The Mobilio benefits from seven-seater capacity despite its small exterior size, making it a good fit in our highly congested urban roads. And since it’s a Honda, quality is first class.
The biggest surprise in this segment was the launch of the Kia Grand Carnival, unveiled earlier this year. The Grand Carnival looks just that: grand, having grown in size, space and with features normally found in more upscale vehicles.
A quick glance will have you mistaking it for a premium US-made minivan, which is the image Kia wants to portray.
Power comes from Kia’s 2.2-liter R-eVGT turbocharged CRDi diesel engine, which helps give the Grand Carnival impressive pace and efficiency. The school/office run will never be boring again.
Just as surprising was BMW’s unveiling of the BMW 2-Series Active Tourer MPV. While purists shunned BMW’s first-ever front-wheel-drive vehicle (Mini excepted), the 2-Series promises to be the best riding, best-handling, and most exciting MPV in the entire MPV segment worldwide, a credo that, coming from BMW, is not hard to believe at all.
In the traditional full-size van segment, Nissan has unveiled its latest fifth-generation NV350 Urvan, replacing the almost 15-year-old predecessor, and helping grow Nissan’s impressive 2015 sales performance and brand revival initiative.
This industry roundup would not be complete without sports cars.
The all-new Mustang made the first big splash in 2015, followed by the unveiling of the all-new Mazda Miata next week, which is big news as the Miata is the world’s best selling proper sportscar.
Porsche has already introduced the Type 991 Porsche 911 GT3 RS, and Lamborghini will be unveiling the Aventador LP750-4 Super Veloce.
Ferrari is set to announce the local launch of the amazing turbocharged 488, while the first modern turbocharged Ferrari, the California Turbo (or Cali T), has already broken cover locally.
Lotus will officially launch its brand and products locally on August 6 with the launching of its Greenhills showroom. This includes the Elise, Exige and Evora sports cars.
Represented by the affable Willy Tee Ten and his group, the presence of Lotus will surely bring more sports car enthusiasts to the track as Lotus cars have always favored handling over outright grunt.
Following the British theme, Aston Martin will also be officially launching soon. Backed by Wellington Soong of Ferrari-Maserati and Jaguar-Land Rover fame and the Tagle family that holds the franchise to Bridgestone tires in the Philippines, this hallowed British brand and James Bond’s vehicle of choice will appeal to the more genteel enthusiasts looking for a more refined but just as pleasurable drive.
Again, Mercedes-Benz will not be outdone and will be releasing the all-new highly anticipated AMG GT, a car Mercedes-AMG has designed to take the fight specifically to one car: the Porsche 911.
Initial reports are that it is fantastic, but does it have what it takes to unseat Zuffenhausen’s finest?
Another Mercedes-Benz model to be launched is the S-Class Coupe, squarely aiming for Bentley’s Continental and Rolls-Royce’s Wraith, specifically in AMG trim. Is there space in this segment for such expensive cars?