Honda Cars PH to cease local manufacturing operations effective March 2020

[Yatta]

a tax holiday won't be enough when they keep producing cars that don't leave the dealers' showrooms

I blame this on their self-proclaimed "exclusivity". Honda eh, hindi pang-Taxi.

[mda]

Tax holiday? I recall an inforgraphic from TGPh wherein they showed the TRAIN Law actually made the prices of the Vios, Mirage, City and other entry-level cars (the ones that are made locally) more expensive while the bigger/imported cars, the SUVs become slightly cheaper. Can't find it anymore though.

I remember Mitsubishi taking over the old Ford plant back in 2015...

Not about making cheaper cars.

It's about making their cars more competitive.

Honda USED to offer cars that are more expensive than their T counterparts but you also get genuinely useful things with them.

Now even the 'bare' Toyotas are catching up. VSA/7 airbags on the entry level Corollas and Rush units? Check! The Vios 1.3Es also now get these AFAIK. Nowhere to be found on the City except for the VX+ nobody buys, the Civic except for the R/RS.

[17Sphynx17]

finally found it

https://www.car guide.ph/2020/02/dti-may-impose-safeguard-measures.html

"Through its research, the DTI found that when comparing imported vehicles (landed cost) versus their domestically produced counterparts, they’ve found that Thai produced vehicles undercut Philippine made ones by 18 percent, Indonesia by 24 percent, and South Korea, 24 percent. The overall average? Cars produced outside the country are 21.75 percent cheaper."

So unless a model is a real volume seller, no brand may be able to justify setting up shop here to make their cars, especially with favorable FTA's which now includes China.

[Monseratto]

Kaya the PH Foreign Direct Investment is a joke compared to Indonesia and Vietnam. .

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[ice15]

finally found it

https://www.car guide.ph/2020/02/dti-may-impose-safeguard-measures.html

"Through its research, the DTI found that when comparing imported vehicles (landed cost) versus their domestically produced counterparts, they’ve found that Thai produced vehicles undercut Philippine made ones by 18 percent, Indonesia by 24 percent, and South Korea, 24 percent. The overall average? Cars produced outside the country are 21.75 percent cheaper."

So unless a model is a real volume seller, no brand may be able to justify setting up shop here to make their cars, especially with favorable FTA's which now includes China.

I really hope na hindi maisip ng DTI na itaas ang tax ng CBU units...

Increase in tax will only mean - more expensive cars, or fewer safety/convenience features... Tayo nanaman ang talo.

[shadow]

I blame this on their self-proclaimed "exclusivity". Honda eh, hindi pang-Taxi.

At the end of the day, it's up to the consumers if they'll buy to the supposedly exclusivity premium.

If their sales are declining honda can only blame themselves.

But if I have to choose between vios and city. I'll pick the city all day.


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[Monseratto]

I really hope na hindi maisip ng DTI na itaas ang tax ng CBU units...

Increase in tax will only mean - more expensive cars, or fewer safety/convenience features... Tayo nanaman ang talo.

They can't do that with the ASEAN free trade agreement. They risk retaliation from
the other ASEAN countries.

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[ice15]

Not about making cheaper cars.

It's about making their cars more competitive.

Hmmm... Based on local prices (Honda vs Toyota)
I think competitive naman price nila (sayang tinapon ko na comparo sheet ko)

City (1.5) 820,000 - 1,068,000
Vios (1.5) 999,000 - 1,098,000
(unfair to compare the 1.3 Vios since walang 1.3 version ang City, if we add the Vios 1.3XE A/T - 738,000)

Mobilio (1.5) 895,000- 1,085,000
Avanza (1.5) 969,000 - 1,077,000

BR-V (1.5 CVT) 1,035,000 - 1,155,000
Rush (1.5 A/T) 1,008,000 - 1,100,000

[ice15]

I blame this on their self-proclaimed "exclusivity". Honda eh, hindi pang-Taxi.

I don't think it's the "exclusivity" part...

I think it's the "sa casa ka lang makaka-kuha ng piyesa nyan"

and

"casa-maintained" thinking

Honestly, pati ako... naiisip ko yan hanggang ngayon.

Si Misis and Daughter ko, yes CASA maintained... masakit sa tenga kapag nagka-problem...

Kung car ko, kahit ako na lang gumawa (kapag may time, kaso since 2005... wala na, CASA maintained na din)

[17Sphynx17]

At the end of the day, it's up to the consumers if they'll buy to the supposedly exclusivity premium.

If their sales are declining honda can only blame themselves.

But if I have to choose between vios and city. I'll pick the city all day.


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I would have said the same thing 5years ago, even 10 years ago.

But honda ph's 'strategy' didn't really evolve and i think they only saw toyota as their rival and were happy with their placement in our market.

Problem was and currently is, new players came in and they still didn't change strategies.

I wonder how big of their remaining marketshare the diesel crv is for 2019?

The old honda 'premium' just doesn't cut it.

I do wonder, with the closing of the plant, does it now open the path a bit more for the newer 1.0liter 3 cylinder turbo engine as they won't be thinking aboit what parts they are producing/using here as much? Would that make that engine option a conaideration for the city/jazz down the line?