Jose “Doyong” B. Tan discovers that the best enterprises are often formed in the worst of times
The year 1997 was possibly the worst time to put up an auto business, but Jose “Doyong” B. Tan Jr. rolled with the punches, and proceeded with the construction of his first Toyota dealership in Cabanatuan City, Nueva Ecija.
Tan narrated in the Toyota Dealers Association of the Philippines’ 30th Anniversary Coffee Table Book published in 2022 that he was running a petroleum business in the 1980s when he applied for a Toyota dealership in 1988. It wasn’t until 1996 that Toyota Motor Philippines approved his application.
“By the time the dealership construction was completed in 1997, the Asian financial crisis was already sweeping the region and the automotive industry was badly hit,” Tan said in the book.
In a recent interview with Inquirer Motoring/Mobility, Tan added, “One of the most difficult challenges I faced when I started the dealership was during the Asian financial crisis. Sales of Toyota cars dropped tremendously, and my dealership operated at a loss for two years.”
The financial crisis may have put his fledgling business in the red, but what it couldn’t taint was Jose’s business savvy, and the brand’s proven market strength and durability.
In the book, Tan asserted, “My experience as an entrepreneur prepared me for challenges like this. Giving up was not in my vocabulary. I knew the nature of the automotive business. I had been made aware by other dealers of its ‘ups and downs’, which made it challenging and rewarding at the same time. It was only a matter of time before my products became widely accepted by the market. During tough times, it’s best to learn from the challenge and use it to improve your business.”
He added: “Focusing on the quality of service we offer gave us an advantage. The training with TMP and TDAP provided our people the knowledge and skills to deliver an exceptional service. We have embraced the Toyota Way by heart. It has become part of our business processes. Prioritizing service created a ripple effect on the different levels of our business. Our customers began to recognize us for our service.”
There was no way to go but up for Jose and his Toyota Cabanatuan dealership. When the worst of the crisis was over, its subsequent sales successes prompted Tan to establish more Toyota dealerships in central and northern Luzon over the years.
Today, as president of the JBT Group of Companies, Tan owns and manages seven Toyota dealerships in San Fernando in Pampanga, Plaridel in Bulacan, Tarlac City, Subic, Nueva Ecija (the original Cabanatuan dealership), Isabela, and Tuguegarao. An eighth dealership—in Malolos, Bulacan—is in the offing, which Jose reveals would be a “joint venture with GT Capital.”
Toyota dealer for life
In his Inquirer Motoring interview, Tan revealed: “The time I realized that auto sales would be my life-long calling was during the introduction of the IMV (Innovative International Multi-purpose Vehicle) models in 2004, which were the Innova, Fortuner, and Hilux, which was also in time for the opening of our second dealership Toyota San Fernando, a joint venture with TMP. That was a remarkable year for us.”
For Tan, the IMV supplied the remaining crucial missing pieces for Toyota in the Philippines. “Having the right products for different market segments brought us the opportunity we have been waiting for. We experienced a surge in the demand for Toyota vehicles following the launch of the Fortuner, Innova and Hilux. These three would go on to become our best selling vehicles for so many years.”
Tan himself was convinced that Toyota was head and shoulders above all other auto brands long before he established his dealerships. “I still have my 1991 Toyota Crown in mint condition,” he pointed out. “That’s proof of its quality, durability, and reliability.”
Achievers during pandemic
In 2021, Tan found himself and his dealerships amidst another crisis. This time, the business was locked down by restrictions imposed as a result of the Covid-19 pandemic. Once more, Jose’s business acumen, the strength of the brand, plus the go-getter initiative of his dealerships’ team members led to JBT Group of Companies not just staying afloat, but thriving even.
“Despite the pandemic, we were very blessed that we won several awards, namely: Champion in the large business division, champion in the small business division, 1st and 2nd runner up in the small business division, and President’s Cup of CS Excellence. By winning these awards, it solidifies the hard work, dedication, loyalty, and honesty of my team members. They excelled and continued to challenge themselves even during challenging times and for that, I’m very grateful to them. They truly embraced our group’s culture of always being ‘driven to serve our customers better.’”
Healthy competition
Toyota is such a formidable global brand, it’s but natural to expect healthy competition among the different local markets that carry the brand.
“Toyota remains to be the top-selling car brand in the country. Admittedly, the competition is coming from within. When we started, there were only 14 Toyota dealerships. Our San Fernando, Pampanga dealership was the 15th. In the past five years, the number of dealerships increased. Right now, there are about 70 dealerships all over the country,” Tan wrote in the 2022 TDAP book.
“I always tell our team members and employees, all dealerships have the same showrooms and workshops. We sell the same cars. What will differentiate us from other dealerships is our customer service, because the customer profile of each dealership is different,” he added.
Regional preferences
Not all local markets are the same, Tan stressed. “To give an example, our customers from Region 2, which includes Cagayan and Isabela, prefer the Hilux pickup because most of them are farmers and miners. In San Fernando, Pampanga, the Vios is our top-selling model. Understanding your market and delivering the services that best fit their profile is something we have mastered over the years. It is the same reason why our customers have remained loyal with us. We bank on the relationship we have established with our customers and take care of the trust they have given us.”
Camaraderie that unites
Nevertheless, despite the competitiveness, Tan observes that Toyota dealers in the Philippines maintain the camaraderie that unites behind the brand. “For the many roles of TDAP, the one I have come to appreciate the most is its unifying capacity as the organization of dealers. Since it brings together all dealers nationwide, we are able to immediately address issues that affect our businesses. We can talk about prices and avoid a price war. We can share experiences and exchange notes to resolve problems.
“As the years pass, we have realized the importance of TDAP in growing and protecting our businesses. Amidst the growing number of dealerships in the country, TDAP continues to play a crucial role in preparing the next generation of dealers for an ever-changing market.
“As we learn new things and adapt to new ways, whether it’s digitalization or artificial intelligence, we do not forget the value that will keep customers loyal—efficient, prompt, and sincere service. Such is the promise we keep to our customers because JBT Group is always driven to serve our customers better,” said Tan.
