MANILA - Despite lower gas consumption and emissions, hybrid vehicles have yet to pick up in the Philippine market given the high price points, officials of various car companies said last week.
Toyota Motor Philippines Corp. president Michinobu Sugata told InterAksyon.com on the sidelines of last week’s 4th Philippine International Motor Show that only about 30 units of the Toyota Prius have been sold in the country since the hybrid car was launched here three years ago.
“Right now, pricing is somewhat prohibitive,” Sugata said, explaining the Japan-made Prius’ slow sales.
In June 2009, TMPC introduced the Prius—the first hybrid vehicle to be sold in the Philippines—with much fanfare. The company had high hopes that up to a hundred units would be purchased that year.
The following year, TMPC-controlled Lexus Manila Inc. launched two hybrid variants of the luxury car brand. At present, Lexus Manila is selling three hybrid models: the LS 600h L, the RX 450h and the CT 200h.
But the cost of producing hybrid cars remains high for manufacturers, as global demand is still low compared with those run by fossil fuel; also, the technology is relatively new.
On the local front, buyers are shying away because of many taxes—including about 20-percent import duty, 12-percent value-added tax, and excise tax.
For instance, a unit of the entry-level hybrid 2012 Prius-C model is priced at around P1.5 million, with taxes running to about P500,000 or a third of the car's price—which is already enough to buy another car.
In the end, the buyer shoulders the taxes that were included in the retail price.
Some car firms like Suzuki Philippines Inc. simply opt not to sell a hybrid. “Hybrid and electric [cars] are too expensive,” Suzuki Philippines president Satoshi Uchida said.
“If we can get support from the government, I think Prius will be sellable,” Toyota's Sugata said.
The government support that TMPC and other car companies are awaiting is the passage of legislation that will give tax breaks to hybrid vehicles.
Last March, the House of Representatives approved House Bill 5460, which aims to promote the use of hybrid, electric and alternative-fuel vehicles by lowering the costs entailed for domestic assembly as well as for bringing in completely built units through tax incentives.
Under HB 5460, importation of hybrid, electric and other alternative-fuel CBUs shall be exempt from paying duties and excise taxes for four years once the bill is enacted into law.
A counterpart bill sponsored by Senator Ralph Recto is pending in the Senate.
The introduction in the country of Honda’s hybrid models such as the Insight and the CR-Z—both of which were displayed at the PIMS—will depend on how soon the said bills become law, according to Honda Cars Philippines Inc. president Tatsuya Natsume.
“As soon as the ‘hybrids bill’ is passed in Senate, we’re ready to launch,” Natsume told InterAksyon.com, adding that Honda Cars Philippines hopes the bill’s approval will happen within this year.
“If tariff-free and excise tax-free, this will help to make the prices go down,” Natsume said.
source: interaksyon.com
