Has the COVID-19 pandemic changed the way Filipinos buy their cars?
In the age of the coronavirus, consumers made a big shift into online shopping—from grocery items, electronic goods and to some extent, even cars.
It used to be this way. Buyers go to a dealership, check out the car they like, take a test drive, and then strike a deal.
But strict health protocols and on-and-off quarantines have cut off some of these purchasing processes. Now, most buyers spend more time doing research online about the cars they want.
They then arrange with a salesperson a visit to the digital showroom, where everything is explained, including financing schemes. Some go for a quick test drive and will get the unit on the same day.
This has become the new normal and car dealers are making every conceivable way to be flexible amid the changing times.
“The auto industry continues to adjust to the effects of the pandemic at the same time striving to strike a balance between its contributions to the economy and keeping its stakeholders safe and healthy during these unprecedented times,” said Rommel Gutierrez president of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).
Old and new ways
Car dealerships have now focused their efforts on making online sales presentations and offering home delivery options.
While these may be some of the keys to success, the old ways of buying a car are still preferred by some clients.
“We Filipinos are different. Matigas ang ulo natin. When we buy a car, we love to see and check it inside and out, smell the interior, test-drive and personally talk with the salesperson. I think, we will still go back to these old ways of buying our car,” said businessman Manny Cortez, adding clients still prefer to visit his shop to check out the wheels that fit their cars.
CAMPI reported that the year’s first half made a vast improvement from sales compared to last year.
From January to July, total industry sales were up 46.1 percent to 154,265 units from 105,583 units a year ago.
In the seven-month period, the Japanese brand Toyota Motor Philippines Corp. continued to dominate the market with a 48.31-percent share. It sold 74,521 units or 67.5 percent more than the 44,481 units recorded in the same period last year.
Unperturbed, car dealers continue to launch new models amid the pandemic.
At Honda, business is at its best.
Honda Cars Philippines, Inc., Honda’s automobile business unit in the Philippines, has announced the All-New City Hatchback’s strong sales performance. Since its launch, the model has climbed to the top of its class in sales.
The All-New City Hatchback officially arrived in the Philippines last April through a virtual launch event. The model’s introduction paved the way for Honda to expand its renowned City model line-up, as it srves as the brand’s newest offering in the hatchback category.
Since then, the model has become one of the country’s best-selling hatchbacks. In its segment, it occupies 75% of the market share with 189 units sold since its launch. It’s an achievement worth mentioning amid the pandemic.
GAC Motor’s aggressive stance
For GAC Motor, a premier Chinese brand, the COVID-19 pandemic is the most opportune time to be more aggressive and stamp its class in the Philippine market.
With limited face-to-face transactions, GAC Motor Philippines revamped its website and launched a more engaging digital experience for its customers.
Its new website has a virtual showroom where a customer may browse the specs of their desired vehicle model, request for a quotation, book a test drive, make a reservation, interact with our representatives through live chat, inquire for a vehicle service, and inquire about how to acquire a GAC Motor dealership.
All these services are right at their fingertips.
Out of the targeted 400 units to be sold, it has achieved 40% sales so far.
Not bad for a car distribution company that has just restarted to revitalize its brand.
GAC has also boosted its presence in traditional media, online, and OOH (Out of Home) media to reintroduce the brand and help the public understand that GAC Motor Philippines has good products to offer.
To meet the needs of Filipino consumers, it has recently launched the 2021 GAC GN8 Master’s Edition and will be launching the 2021 GAC GS4 this November, and the 2021 GAC GS8 soon.