Suzuki Philippines, Inc. is the Top 10 phenom that leaped from No. 8 in 2017 to the coveted No. 3 spot in June 2021.
How did they do it? An online interview with Keiichi Suzuki, the VP and general manager of the automobile division of Suzuki Philippines, Inc. (SPH) gave PDI Motoring a clue as to how the brand achieved this goal within a span of only three and a half years despite the TRAIN law, a volatile inflation rate, the longest COVID-19 lockdown in the world, and the recent safeguard measure on imported motor vehicles.
Suzuki revealed that as early as April 2020, the very next month following the implementation of the first Enhanced Community Quarantine, SPH launched a digital showroom and drive-through link to online bank loan applications on their website to make things easier for customers.
EARLY DIGITAL TRANSFORMATION. “With the safety and welfare of our people as the primary consideration, we aggressively responded in the digital transformation of our consumers,” Mr. Suzuki said. “We invested in different lead management systems to develop digital sales specialists across networks, carried out virtual launches and activities, and intensified our digital assets to open more channels for selling. Our current situation presents opportunities for our products such as the growing need for mobility, the increasing number of SMEs looking for compact and value-for-money vehicles. With just a few clicks, customers in the comfort of their homes can learn more about the units they’ve been wanting to check out. These, among others, contributed to our performance.”
The digital marketing of SPH is supplemented by 71 dealer networks nationwide: 26 in Luzon, 18 of which are in the National Capital Region (NCR); 17 in the Visayas; and eight in Mindanao.
5 NEW MODELS. At present, SPH offers 11 Suzuki models coming from four segments: hatchbacks, Multi-Purpose Vehicles (MPVs), passenger sedans, sport utility vehicles (SUVs) and light commercial vehicles.
In spite of the quarantine restrictions that pummeled auto industry sales, SPH launched two all-new models online, the S-Presso 5-seater mini hatchback and the 7-seater XL7 MPV, right after the first lockdown was imposed in March 2020. This year, SPH virtually introduced three upgraded models: the new DZire subcompact sedan, new Vitara AllGrip compact SUV, and the new Ciaz compact sedan.
“The Suzuki S-Presso and new DZire greatly contributed to our success in sales, especially since hatchbacks/ small cars are really in demand since the pandemic started,” Mr. Suzuki said.
While the Ertiga compact 7-seater MPV remains Suzuki’s top-selling model, Mr. Suzuki enthused that “Our S-Presso has been a hit since we launched it virtually last year. It captured the hearts of many people with its unique exterior and interior design, not to mention its price point.” (The 2021 Suzuki S-Presso retails at P523,000.)
Last July, the tough little Carry, which has more than 40 years of subcompact cargo truck/van experience in the harshest environments, began to share the Ertiga’s starring role as the top-selling model of SPH. The Ertiga and the Carry each accounted for 20% of total sales, followed by the Dzire with 18%.
The vehicles that SPH sells are imported CBUs (completely built units) from India, Indonesia, Thailand and Hungary. The new Vitara AllGrip is the only CBU from Hungary.
Suzuki, as a joint venture partner of Maruti, is the leading car brand in India and thus believed to be the main source of vehicles for the Philippine market. Although the Philippines has a preferential trade agreement with India under the ASEAN Free Trade Agreement umbrella, Suzuki disclosed that the reduced duties thereof do not apply to CBUs from India. “In fact, the CBU rate of duty is 30 percent,” he says.
Despite this and the continuing series of lockdowns, Suzuki said that SPH’s automobile division sales target for 2021 is 18,000 units. Since SPH has been selling more than 1,500 automobiles every month this year, and it already scored YTD sales of 11,635 last July, with four more months to go including the much-anticipated Christmas shopping season, there is reason to believe that Suzuki PH, Inc. will reach its sales target by year-end — if not surpass it.
