Iconic Rolls-Royce sets sights on PHL, 'Asia's rising star'

Luxury car sales in the Philippines account for a mere 1 percent of the yearly industry turnover, a situation that, coupled with the country's glowing economic prospects, translates into a huge potential for expansion. Leading think tank Moody's Analytics recently called the Philippines "Asia's Rising Star" in a report that only added to the global excitement of brands eyeing new markets. Rolls-Royce, an ultra upscale brand that sells for at least €245,000 or P13,155,054.50 per unit in Europe, is seriously looking at the Philippine market, particularly these days when sales are shrinking in major markets, like China. "There is a potential to grow the luxury cars market in the Philippines despite a relatively small volume of luxury vehicles versus total auto industry sales," said Rommel R. Gutierrez, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president. “In other countries, luxury sales account for 20 percent of the total industry sales,” said Gutierrez, who is also a vice president of Toyota Motor Philippines Inc. “Here, luxury cars sales account for only a little over 1 percent of total vehicle sales. “The potential is really big,” he added. Scouting for PHL dealer Intending to ride on the growing Philippine economy is Rolls-Royce Motor Cars. The company is now scouting for a dealer-partner and targets a presence in the Philippines in the fourth quarter of 2013. The people behind the iconic British brand is banking on the Philippine elite's love for cars as well as on its expanding economy. "We will announce our official dealership appointment in the next month or so... and we hope to have opened showroom facilities by Q4," Paul Harris, Rolls-Royce regional director for the Asia-Pacific, told GMA News Online in an e-mail message. "With this in mind looking at expansion within the market is an understandably natural progression for Rolls-Royce Motor Cars in order to meet the needs of our client base within the country," said Harris. According to a South China Morning Post article earlier this month, Rolls-Royce is looking at Japan and new markets Vietnam and the Philippines to sustain the growth momentum the company achieved in 2012. Significant growth Ma. Fe Perez-Agudo, Association of Vehicle Importers and Distributors (AVID) president, said the automotive industry expects significant growth this year based on the country’s strong economic fundamentals. “With that said, the luxury car segment will also ride on that growth,” she added. Rolls-Royce recently launched its newest model, the Wraith, priced at €245,000 per unit. Notable owners of Rolls-Royce automobiles include Britain's Royal Family.  HRH Haji Hassanal Bolkiah, Sultan of Brunei Darussalam, owns the largest collection of Rolls-Royce cars, according to the Guinness World Record. The late pop icon Michael Jackson owned a couple of vintage models, and so did the late King of Rock and Roll Elvis Presley. LA Galaxy football star David Beckham and Hollywood actor Sylvester Stallone are also listed as proud owners of the  British car. Kate Middleton took a Rolls-Royce to Westminster Abbey when she wed Britain's Prince William on April 29, 2011. A question of quality Last January, luxury car sales in the Philippines grew by 21 percent to 472 cars from 373 a year earlier. Mercedes Benz has long been a favorite of wealthy Filipinos, but BMW sedans and even sports cars have been trendy in recent years. For the whole of 2012, Philippine dealers sold 4,652 luxury cars, up by 1.48 percent from 4,583 in 2011. The numbers exclude sales of Jaguar cars. In its weekly report, Metrobank Research noted the industry targets to sell around 200,000 units this year. "Expect automotive sales to grow modestly this year as the environment continues to be supportive of robust consumer spending. Interest rates are expected to remain low while inflation is still expected to be manageable, especially as global economic conditions continue to be weak," it said. “The Philippines... boasts of an upper echelon that could satisfy the demand for luxury vehicles where price is not the primary factor for purchase,” said AVID's Agudo. “Buyers in this segment tend to maintain more than one vehicle in their garage as the purchase of vehicles in the luxury segment tends to favor wants over the basic need for transportation. As such, variety will always be welcomed by consumers in this category,” Agudo noted. The luxury market is more of a question of quality and brand association rather than quantity, so different brands would not find their respective growths hindered, said Gutierrez. “Luxury cars are more a personal choice for the customer and it is great to see a plethora of choices available for the discerning Filipino buyer,” he added. Last year, Ferrari and Maserati opened showrooms in Metro Manila. — VS/HS, GMA News