China state-owned BAIC enters PHL car market

As part of plans to go global, China's state-owned carmaker is entering the Philippine automotive industry, taking advantage of the Southeast Asian country's growing population.

 

The Philippines is an important market for China's BAIC Group given the big population it has, Bayan Automotive Industries Corp. president and CEO George Chua told GMA News Online during the company's debut at the 5th Philippine International Motor Show in Pasay City on Thursday.

 

"BAIC is a global brand. To be global, you cannot bypass the Philippines. It has 100 million population so it is a very important market," he said.

 

Bayan Automotive, a wholly-owned subsidiary of Universal Motors Corp., was appointed as the official distributor of BAIC vehicles in the Philippines.

 

"We got our distributorship agreement... granted to us on July 1, 2014. It's a fairly new thing," Chua said.

 

The Philippines is the seventh country it entered in the ASEAN region, after establishing presence in Cambodia, Indonesia, Laos, Malaysia, Myanmar and Vietnam only last year, BAIC International Development Co. Ltd. senior consultant David Hann said in the same interview.

 

It is "only less than two years" since the BAIC group penetrated the ASEAN region, he noted.

 

In China, BAIC is the holding company of several Chinese automotive and machine manufacturers and is the partner for Daimler AG for Mercedes-Benz C-Class and E-Class models, and also Hyundai for the Chinese market.

 

With its first showroom in Pasong Tamo in Makati City, Bayan Automotive aims to provide a cheaper alternative for Filipinos in terms of rides, Chua said.

 

BAIC will initially offer five models including a sedan, hatchback, SUV, minivan and a full-sized van. BAIC's MZ40 minivan is priced at P468,000 to P488,000.

 

"Bayan Auto will establish its own dealership throughout the Philippines.  We're talking to some people. We should have four dealerships within the next 12 months," he added.

 

All BAIC vehicles are currently imported as completely built up (CBU) units. 

 

The company plans to assemble vehicles in the Sta. Rosa, Laguna plant that is under Star Motor Manufacturing Industries Inc., depending on demand, Chua said.

 

The carmaker targets to hit 1,000 units a month in order to reach the sweet spot for starting an assembly in the Philippines, he noted.

 

"Our long-term plan is once we have established demand for a particular unit, then we can take a look at doing KD – knocked down – version to assemble here," Chua said.

 

"We don't need to wait for [the automotive industry roadmap]. What we need to wait for is to see if there will be sufficient volumes for which particular product Filipinos would like to have. As long as there's demand for it, we'll do it," he added. – VS, GMA News