A person shows US dollars at a currency exchange stall in Manila, Philippines, Oct. 21, 2022. — REUTERS
THE PHILIPPINES’ outstanding external debt hit a record-high $125.4 billion at the end of December, equivalent to 28.7% of gross domestic product (GDP), data from the Bangko Sentral ng Pilipinas (BSP) showed.
The central bank reported that external debt jumped by 12.7% from $111.3 billion at end-2022. It was also up by 5.5% from $118.8 billion as of end-September.
“The rise in the debt level was due to prior periods’ adjustments (i.e., borrowings made in previous quarters) amounting to $2 billion, of which $1.9 billion were borrowings by private sector nonbank firms,” the BSP said.
External debt includes all types of borrowings by residents from nonresidents.
The BSP said the increase in debt level is mainly attributed to net availments worth $4.9 billion by both the private and public sectors.
“The positive foreign exchange revaluation of borrowings denominated in other currencies as well as the net acquisition of Philippine debt securities by nonresidents from residents further increased the debt stock by $960 million and $816 million, respectively,” it said.
Last year, the peso appreciated by 18.5 centavos or 0.33% to P55.37 on Dec. 29 from its P55.755-per-dollar close on Dec. 29, 2022.
“The rise in the external debt stock was partially tempered by prior periods’ adjustments of $98 million,” it added.
The BSP said that the year-on-year rise in debt was due to “net availments of $9.2 billion, bulk of which were net borrowings by the National Government (NG).”
It also said this was due to the “change in the scope of the external debt to include nonresidents’ holdings of Philippine debt securities issued onshore reported in the first quarter of 2023 and prior years’ adjustments of $1.2 billion.”
This brought the external debt ratio, or the external debt as a percentage of GDP, to 28.7% in the fourth quarter. This was higher than 28.1% in the third quarter and the 27.5% ratio as of end-2022.
The debt service ratio, or principal and interest payments as a fraction of export receipts and primary income, jumped to 10.2% from 6.3% a year ago.
The BSP attributed this to higher principal and interest payments. From May 2022 to October 2023, the BSP raised borrowing costs by 450 basis points (bps) to bring the key rate to 6.5%, the highest in nearly 17 years.
“External debt service burden nearly doubled in US dollar terms in 2023 due to sharply higher US and global interest rates since 2022 to better manage both inflation and inflation expectations, amid higher world oil and other commodity prices triggered by the Russia-Ukraine war nearly two years ago,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The US Federal Open Market Committee (FOMC) has raised borrowing costs by 525 bps from March 2022 to July 2023, bringing the target Fed fund rate to 5.25-5.5%.
Meanwhile, BSP data showed that private sector debt rose by 5.4% to $47.6 billion at end-December from $45.1 billion in the previous quarter.
“Private sector borrowings for the quarter were mainly driven by the $3-billion availment by a nonbank firm under a syndicated loan from offshore banks. Proceeds from said borrowings were used to finance its capital expenditures and maturing obligations,” the BSP said.
It noted that the bulk of the recorded availments were from the increase in short-term liabilities of local banks and borrowings by private sector nonbank entities.
Meanwhile, public sector debt increased by 5.6% to $77.8 billion in the fourth quarter from $73.7 billion in the previous quarter.
The bulk or 91.2% of public sector obligations were from NG borrowings while the remainder came from government-owned and -controlled corporations, government financial institutions and the BSP.
“Public sector borrowers, on the other hand, tapped official creditors and the Islamic finance market through the maiden issuance of the NG’s $1-billion 5.5-year dollar-denominated Sukuk bond to fund general financing requirements, infrastructure projects, and social welfare programs.”
At end-December, the Philippines’ top creditor countries were Japan ($15.6 billion), China ($4.7 billion) and the United Kingdom ($4.2 billion).
Loans from multilateral ($33.1 billion) and bilateral sources ($15.2 billion) accounted for 38.5% of all external debt.
This was followed by bonds ($40.9 billion or 32.7%) and foreign banks and other financial institutions ($28.7 billion or 22.9%), while the rest ($7.5 billion or 6%) were owed to suppliers and foreign exporters.
“For the coming months, possible Fed rate cuts later in 2024 could help ease the country’s external debt service burden in terms of lower interest expenses on foreign debts going forward,” Mr. Ricafort said.
Markets are anticipating the Fed to begin cutting rates by the middle of the year, with the BSP expected to follow suit.
The FOMC is scheduled to have its meeting this week (March 19-20) while the Monetary Board is set to hold its next policy meeting on April 4. — Luisa Maria Jacinta C. Jocson
By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor, BusinessWorld
Trust is the cornerstone of banking and financial services. Even in ancient Mesopotamia, when trade and barter was the primary economic model for civilization, temples acted as the repositories for agricultural goods and precious metals, because people trusted their religious leaders to protect their valuables and facilitate equitable lending transactions in the form of grain loans or commodity exchanges.
In the Middle Ages, as merchants started to need safer means of wealth storage and long-distance commerce, the earliest establishments most resembling the banks of today rose to prominence, such as the famous Medici Bank in Italy and the Fugger Bank in Germany, alongside innovations like sophisticated bookkeeping and paper currencies.
Now in the digital age, innovation once again fuels the engine of progress in the financial industry, nurturing greater trust between financial institutions, their clients, and broader market participants, by enhancing efficiency, transparency, security, and accessibility.
Dr. Robert B. Ramos, CFA, CAIA, president and chief executive officer (CEO) of RCBC Trust Corp., said that their clients’ habits have been shifting towards digital since the digital transformation took off in the industry a few years ago.
“The use of digital platforms and other electronic means for account opening, order-taking, report generation and investment portfolio monitoring is becoming the norm especially for retail clients,” he said in an interview with BusinessWorld.
Naturally, this change in consumer demand led to a reevaluation of their strategy. Dr. Ramos explained that the shift to digitalization has not only changed the way they sell their products and process their transactions, but it fundamentally changed how they interact with their clients. “Providing our clients with a convenient and effortless way to access investment products has always been a top priority for us,” he said.
“A number of our client meetings are now held virtually. This enables us to ‘e-meet’ and to discuss our services with several clients in a day. Further, more clients prefer to do their investments online now rather than going to the branch or submitting hardcopy documents,” he said.
Ms. Maria Theresa Marcial, president and CEO of BPI Wealth, shared similar comments, saying that major players in the industry have been upgrading their digital platforms to become more intuitive, aesthetic, and make financial content more accessible to the general public.
“More than refreshing the look, the aim is to make content more understandable for those who may not have extensive financial expertise,” she said, adding that technologies like artificial intelligence (AI) have been a great boon towards streamlining and enhancing their client services.
“We innovate because we always want to elevate the customer experience to the next level. Through our recent innovations, we have improved access to our products and made the process of onboarding virtually ‘painless.’ Our turnaround times for transactions have also been significantly shortened. There is an increase in transparency since portfolios can be monitored real-time and reports can be generated online. All these enhanced trust and confidence among our clients,” Dr. Ramos added.
On new technologies, Ms. Marcial mentioned that robotic process automation combined with AI in advanced data analytics could potentially enable the handling of large datasets, identification of patterns, and generation of financial insights, ultimately allowing account officersto offer more tailored advice and investment solutions for their clients.
Mr. Raffy Ayuste, former chief trust officer at BDO Unibank, Inc., echoed the sentiment: “AI undoubtedly will have an immense impact on the trust business in the country. It’s a reality in trust services as the technology continues to evolve and deepen to provide meaningful results and widen its reach. The major impact will be much felt in the investment advisory aspect.”
“It will provide more personalized financial advisory options, given clients’ situations and preferences, than what is currently in place in the local market. It will provide better guidance in the generation of return on investments,” he added.
Essentially, as the financial landscape continuously adapts to meet changing consumer expectations, innovation has become even more compelling, particularly at a time when emergent technology like AI is improving at a lightning-fast pace.
Much has been discussed about the benefits of digitalization towards the pursuit of broader financial inclusion, as the Bangko Sentral ng Pilipinas has made it a goal to create a digital financial ecosystem with “the right mix and range of financial service providers, digital solutions and delivery channels to promote the efficiency and reach of financial products and services.”
The effort has been paying off. According to BSP Governor Eli M. Remolona, Jr., 65% of the adult population have bank accounts in 2022, up from about 56% of all adults in 2021, and even higher from the 29% recorded in 2019.
This translates to about 22 million Filipinos having gained access to formal financial accounts between 2019 and 2021, driven by accelerated growth of digital payments.In addition, the share of digital payment transactions reached 42% in 2022, from 30.3% in 2021.
Under its Digital Payments Transformation Roadmap, the BSP aims to digitize 50% of total retail transactions and onboard at least 70% of Filipino adults to the financial system by the end of 2023.
“Yes, we are gaining ground, but there is still so much more that we can do,” Mr. Remolona had said.
Technologies like AI promise to transform the landscape even more, breaking down conventional barriers and empowering individuals to participate in the formal economy, thus fostering inclusivity and trust in the system’s ability to serve diverse needs.
AI, according to Dr. Ramos, can be applied in anything from account on-boarding, building an investment portfolio, rebalancing a portfolio, and report generation, among others.
“It can also help in slicing and dicing market segments so we can push the appropriate products to clients who actually need them. The possible applications of AI are endless and the industry needs to be able to capitalize on this to be able to compete,” he said.
Ms. Marcial said that unrelenting digitalization will only serve to improve customer experience, making investment processes transparent and understandable, thus building trust and confidence in the services provided.
“The integration of digital technologies, automation, a forward-thinking workforce, and a redefined advisory role collectively contributes to enhancing trust and confidence in the trust and asset management industry,” she said.
A technological revolution in banking is underway, and it will not be limited to these technologies either. As advancements such as blockchain, biometric authentication, and AI-driven fraud detection become more prevalent, consumers can expect heightened security, transparency, and truly personalized experiences from their trusted financial partners.
Not only can the integration of these technologies forge deeper relationships between banks and their clients, it will foster a banking environment where trust is not only upheld but strengthened — an environment where consumers are empowered, confident, and included in the country’s economic development.
This article is in the special edition of BusinessWorld In-Depth digital magazine, in celebration of Trust Consciousness Week. Get the full issue for FREE via BWorldX. Visit www.bworld-x.com.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
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By Angela Kiara S. Brillantes, Special Features and Content Writer, BusinessWorld
Banking is a fundamental aspect of the economy. It provides financial security among individuals, businesses, and government agencies to manage their finances, investments, and loans.
Throughout the years, prominent drivers of the sector have contributed to the growth of banking. Among these drivers is trust services which not only develop financial health but also cater to the growing demand for services that goes beyond safekeeping, borrowing, and lending.
The trust industry is a key driver to financial stability in the Philippines. As the country’s credit and investment rating improved in recent years, the business of trust has become more important than ever.
To ensure better quality financial services and contribute to the development of capital markets in the country, the Trust Officers Association of the Philippines (TOAP) was founded in 1964; and since then it has been at the forefront of financial management and services.
In its earlier years, the association focused on managing court trusts, land registrations, and selective trust funds; and later on, as the business of trust began to grow, TOAP played a wider role in further pioneering the Philippine financial services sector.
Since its inception, the association has been working closely with the Bangko Sentral ng Pilipinas (BSP) to further promote trust, investment, and fiduciary services in the Philippine market.
“The trust industry today has transformed significantly since its entry into the local financial system at the start of the 20th century. Although the development of the trust concept was slow in the beginning, the local trust business has steadily evolved to reach a level comparable to its counterparts in the Southeast Asian region in terms of structure, investor sophistication, and product offerings,” TOAP said in its 50th anniversary coffeetable book.
Through the years, TOAP has seen a lot of changes, one of which is embracing digital transformation for investments. Since the pandemic hit the Philippines, the trust industry has adapted to new ways of working and doing business/es. The pandemic has driven hybrid and digital forms in work and transactions, which places an even stronger emphasis on enhancing services to clients using digital tools.
“As the economy re-opened post-pandemic, we are now seeing a combination of return to physical engagement and higher digital usage as compared to pre-pandemic,” Mr. Rafael G. Ayuste, Jr., former chief trust officer of BDO Unibank, Inc., shared. “Also, more and more trust entities are providing seamless digital investment transactions thus giving the investing public more options, variety and flexibility.”
At present, the investment landscape offers many options that are designed to address consumers’ financial needs. Unit investment trust fund (UITF), for instance, is a type of investment pool that distributes an individual’s investments in a portfolio of securities like stocks, bonds, or money market instruments.
As financial markets evolve, investment opportunities grow as well. Different types of UITFs can be explored, such as global funds that focus on global investments, feeder funds that pool money from multiple investors and invest in a master fund, and other arrangements, including investment management account (IMA) for purely investing purposes, and personal management trust (PMT) that allow clients to control their assets and provide for their beneficiaries even beyond their lifetime. These products and arrangements open the door for the Philippines to access and invest in various financial markets.
TOAP has been a witness to bringing these tools closer to Filipinos. Dr. Robert B. Ramos, president and CEO of RCBC Trust Corp., recalled that TOAP worked closely with the BSP to expand UITF structures and thus made significant progress in that regard. Such progress includes the use of banking technology, which changed the game for the sector. For instance, digital banking simplifies access to financial transactions using the internet and mobile devices, anytime and anywhere, removing the need to go to a physical branch.
Since post-pandemic, as the overall economy regains momentum, TOAP has been quickly evolving. According to TOAP data, the Philippine Trust AUM saw an increase from P5.35 trillion in 2022 to P6 trillion as of third quarter of 2023. These figures bear witness to how the association continues to be a great champion in addressing the investment needs of investors.
In line with this objective, Mr. Ayuste also shared that the association is continuously working with regulators to improve the regulatory framework, collaborating with industry players to develop top-quality products and practices, and keeping Filipino investors informed of industry developments and the benefits they can expect from these changes and initiatives.
Harmonizing whilst mitigating risks
These developments notwithstanding, the trust industry faces its own set of challenges. The primary issues stem from the increasing competition posed by brokerage houses, treasury departments, fintech, and other investment structures, as Mr. Ayuste shared.
To address such risks, TOAP is working closely with regulators to boost the industry’s position in the market.
“TOAP continues to work with regulators to strengthen trust industry’s dominant position in the market by improving products and services as well as simplifying rules and regulations to improve efficiency and productivity. Given the highly regulated nature of the trust industry, we have seen institutions veering away from the trust structure and using the brokerage model,” Mr. Ayuste said.
To do this, the association is also taking part in legislative decisions to standardize investment structures.
“The harmonization of the rules and regulations across different regulations and regulators have been in the works for quite some time now but this goal remains to be just a plan,” Mr. Ayuste added. “The harmonization is crucial to ensure leveled playing fields among the market players to enable best-in-class products for the benefit of the investing consumers.”
Another challenge in the market lies within global events and their potential impact on the Philippine economy. Dr. Ramos believes that industry players must strive to mitigate such risks by guiding clients towards diversifying their portfolios. By doing so, it will help them better manage potential risks.
Next steps for trust
Moving forward, the sector remains optimistic about how the industry will continue to grow in the following years. With the increased interest in investing, the importance of digital investment channels will become more prominent.
According to Dr. Ramos, the association will need to keep abreast of and keep adjusting to fast changes, such as in how and where consumers get their content, to drive growth in the trust industry.
“Adapt to different market conditions, changing regulatory frameworks, a more global financial marketplace, and shifting client preferences,” he advised. “TOAP members have to use the new tools that we have available to serve our clients better and serve them through the channels they prefer to use.”
Moreover, the industry will continue to thrive as the economy grows. “The increasing wealth of the Filipinos should provide the industry with solid ground to push trust as the dominant platform for wealth management in the Philippines. Already, we are seeing more players in the wealth management arena using trust as its platform,” Mr. Ayuste said.
“To this end, TOAP should push for more definitive regulations that serve the needs of the more sophisticated investors. This market requires greater access to the global investment opportunities that they get from their off-shore bankers. This market is very ripe for the picking, but regulations must be able to distinguish between protecting the ordinary Filipino investors and the needs of the sophisticated Filipino investors,” he added.
This article is in the special edition of BusinessWorld In-Depth digital magazine, in celebration of Trust Consciousness Week. Get the full issue for FREE via BWorldX. Visit www.bworld-x.com.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.
We should be positively stoked about the state of our EV market
PARDON THE PUN, but it’s almost shocking when you realize that there are now more pure electric vehicles on the market than there are pickups and vans combined.
And you know how crazy Filipinos are about pickups and vans.
Just three years ago, electric vehicles were more a curiosity than a legitimate alternative to an ICE (internal combustion engine) car. The choices then were pretty much the Nissan Leaf (which retailed for just under P2.8 million) and the Porsche Taycan (well, if you need to ask the price…).
Fast-forward a mere three years and, thanks to the EVIDA Law that granted tax breaks to electrified cars, the Nissan Leaf is now just under P1.9 million (a whopping P900,000 price drop) while the Porsche Taycan has been joined by pure EVs from Audi, Lexus, BMW, and Mercedes-Benz — plus a dozen other mainstream brands. You can now bring home a pure EV for under P700,000.
CHALLENGES Of course, the principal issue pertaining to EV ownership — range anxiety — is still there. And while many electric vehicles have impressively long driving range (a fair number can exceed 400 kilometers on a full charge), it is still the severe lack of charging stations that give car buyers pause.
Yes, you can drive a fully charged EV every day for a week for your home-office commute and need to charge it only by the weekend, but people who buy cars would prefer that it be able to take them to a round of golf in Laguna on a whim (without having to calculate if they can make it back) or go on a drive to Baguio and not have to worry about finding an AC outlet as soon as they arrive.
Yes, there is a growing number of charging stations in the malls, but the two or three charging stations in each mall are proving inadequate to charge the fast-growing number of EVs and plug-in hybrid electric vehicles (PHEVs).
I’ve brought EVs and PHEVs to malls and, half the time, all the charging station slots are occupied. For weekends, it’s a totally different matter; they’re almost always full.
There simply should be more charging stations at malls, and also at car parks, office and residential condominiums, and along major thoroughfares (especially along NLEX, SLEX, and other expressways). They don’t even have to be for free (as they are now at the malls).
RELIABILITY EV reliability? The myth about poor electric car reliability has been busted, at least according to data from one of the UK’s leading vehicular breakdown providers.
Contrary to common perceptions, EVs are 59% less likely to require a breakdown emergency call than ICE vehicles, at least based on UK statistics.
“Our figures show electric cars ranging from new to 10 years old are 59% less prone to breakdowns than ICE cars,” said UK firm Start Rescue Managing Director Lee Puffett. “This might surprise some motorists, but with more than a million EVs now on the UK’s roads it shows drivers can choose an EV, confident that they are less likely to be stranded at the roadside.”
Puffett added: “The hurdle to buying an EV of any age is more psychological than real for most buyers looking to make the switch from ICE to electric power. EV batteries are not like the ones in your mobile phone or laptop — they retain far more of their charge capacity to give you plenty of driving range. However, you still need to look after the 12-volt battery to avoid one of the most common causes of call-outs.”
An EV’s 12-volt battery, very similar to the one you’ll find in a regular ICE car, performs the same functions as in petrol and diesel cars, such as powering the dashboard electronics, which enable the vehicle to start, as well as supplying electricity for the power door locks, lights, wipers, power windows, power seats, the sunroof, and the infotainment system.
The good news, from Start Rescue’s own data, is that EVs are less likely to suffer from a dead battery emergency call than petrol or diesel cars. For EVs, this accounts for 23.7% (just under one out of four) of call-outs compared to 29.7% (one out of three) for petrol and diesel. Regular use keeps the 12-volt battery in good condition and avoids breakdown emergency calls as EVs still need this system to open the doors and start.
WHO’S SELLING WHAT? So what are the pure electric cars on the market now? Here they are (and their various models) in alphabetical order:
1 of 16
Audi Q8 e-tron — PHOTO BY KAP MACEDA AGUILA
Dongfeng’s electric vehicles available in the country — PHOTO BY KAP MACEDA AGUILA
Jetour Ice Cream — PHOTO BY KAP MACEDA AGUILA
MG Cyberster — PHOTO BY KAP MACEDA AGUILA
BMW i5 — PHOTO BY KAP MACEDA AGUILA
Foton Tornado EV truck — PHOTO FROM FOTON
Kia EV6 — PHOTO BY KAP MACEDA AGUILA
Nissan Leaf — PHOTO FROM NISSAN
BYD Atto 3 — PHOTO FROM BYD
Hyundai Ioniq 5 — PHOTO BY KAP MACEDA AGUILA
Lexus RZ 450e — PHOTO BY KAP MACEDA AGUILA
Porsche Taycan — PHOTO FROM PORSCHE
Chery eQ7 — PHOTO BY MANNY N. DE LOS REYES
Jaguar I-PacMercedes-Benz EQSe S EV400 — PHOTO FROM JAGUAR LAND ROVER
Mercedes-Benz EQS — PHOTO BY KAP MACEDA AGUILA
Weltmeister W5 — PHOTO FROM WELTMEISTER
There are now 16 automotive brands that purvey (or will soon bring in) 32 different models of pure electric vehicles. And that’s not even counting the individual variants. I added Foton’s Tornado EV light truck as it was the first fully electric truck to hit the local market.
No less than six luxury brands offer full EVs while 10 mass-market brands are currently offering (or are planning to release) them soon. Prices range from a low of P699,000 for the Jetour Ice Cream (100kph top speed and 170-km driving range) to a more mainstream P1,468,888 for the MG 4 EV all the way to over P4 million (and in some cases, way over P4 million) for the luxury brands. And there are several more new EVs expected to debut in next month’s Manila International Auto Show (MIAS 2024).
All of this bodes well for the future of electrified mobility in the country. More choices are always good. We just need the government and big business to get the ball rolling faster. The age of noiseless and smoke-free urban centers might yet be realized in our lifetime.
US WEEKLY lists Reese Witherspoon, Gwyneth Paltrow, Kate Hudson, and Kylie Jenner as fans of running shoe brand Hoka (other publications list more celebrities; Harry Styles and Gisele Bündchen have both been spotted wearing them). While already available in the Philippines when its initial stores opened in February last year (in Ayala Malls by the Bay and SM Aura), it held a grand launch and simultaneous store openings in Greenhills and One Ayala on March 14.
BusinessWorld took a tour of the store in One Ayala, which was small at just about 100 sqm. While the heavily cushioned shoes were on display, the store’s highlight was the foot scanner, which creates a 3D model of the customer’s foot. A tablet held by a store associate interprets the resulting data, then gives a recommendation for the ideal shoe from their store. Their offerings cost between P7,000 to P9,500. We were also told that a lot of the stores’ employees are athletic themselves, which really helps for them to understand a customer’s needs. Finally, the store is equipped with a treadmill, so a customer can have a (literal) test run in the shoes.
Prasanna Bhaskar, General Manager of Asia Pacific for Deckers Brands (which acquired Hoka in 2013, joining other brands such as UGG, Teva, and Sanuk) talked about the brand’s origins in 2009:
“He was experimenting with a shoe that could help runners run fast downhill,” she said of Hoka founder Jean-Luc Diard. “It was a shoe designed to help marathoners and trailrunners,” she said, and the shoes were tested by athletes running in the Alps.
About the shoes’ comfort, Ms. Bhaskar said, “I think it’s about the safety of running in Hoka. I don’t think every cushion shoe will deliver the same comfort.”
After we listed down the celebrities we read about who were spotted wearing Hoka, she said, “Running is a thing. A lot of celebrities have taken to running, especially post-pandemic. The few names that you mentioned have been great advocates of an active lifestyle. We’re an inclusive brand, and I think it’s important that at the very soul of this brand, we… include everyone who’s willing to move, who’s engaging in a sport.”
Having been founded by a French person, we had to ask about their involvement in the Paris Olympics this year, to be held beginning in July, with the torch relay beginning in April. Ms. Bhaskar said that they’d be opening their Paris store soon. “Definitely a destination store to celebrate the Olympics,” she said.
The brand’s name, Hoka, means “Time to Fly” in Maori. “To fly is joy. Just think about the word in itself,” she said when asked about the significance of flight to the brand.
“For us, it’s about bringing joy to anyone who is active, irrespective of the sport you’re doing.”
The two new stores are on the 2nd level of One Ayala Mall, located at the corner of Ayala Ave. and EDSA in Makati, and the other at is at the GH Mall in the Greenhills Shopping Complex along Ortigas Ave. in San Juan. — Joseph L. Garcia
The term ‘motoring’ is slowly being eased out, with good reason
THE LAST COUPLE of years have shown us that our motoring landscape is poised to undergo significant transformations. Quite a lot, in fact, that people in the industry no longer choose to refer to motoring as “motoring,” but instead call it mobility. This evolution is helped along by a combination of factors, such as environmental imperatives, general technological advancements, urbanization, and shifting consumer preferences, to name a few. From the democratization of shared mobility services (I’m looking at you, Uber and Grab), to the rise of electric vehicles (thanks to major advancements in battery technology and its mass production price), several key global and regional (ASEAN) trends are shaping the future of how we move.
Let’s review some of them.
Perhaps the most talked-about ongoing transformation in the realm of mobility is the electrification of vehicles. This movement is mainly driven by the global effort to reduce carbon emissions and combat climate change. Combined with major advancements in battery technology and its now lower cost of production, EVs are fast becoming viable alternatives to traditional internal combustion engine (ICE)-powered vehicles, not to mention that there is growing infrastructure of charging stations — although still a bit slow in rolling out.
Meanwhile, it really helps that governments around the world are following each other in implementing policies to help incentivize the use of EVs. Among these incentives are subsidies and tax reductions; though the implementation of stricter emissions regulations also indirectly impact traditional ICE vehicles.
Faster urbanization trends also affect people’s choices for mobility. Sometimes, it is far easier for people to not own cars, especially in congested areas, and this paves the way for the growth of shared mobility. With the new concept of mobility as a service (MaaS), there now exist platforms that integrate various modes of transportation. They integrate ride-hailing, bike-sharing, and public transit into a seamless, on-demand service that is accessible through a single digital platform. This may deliver greater convenience and affordability, while simultaneously helping to reduce pollution and transportation congestion.
The recent COVID-19 pandemic has also catalyzed major shifts in movement patterns. As we all know, work-from-home (WFH) arrangements have now become more prevalent, and there also seems to be a greater emphasis on active transportation modes such as cycling and walking. As big cities begin to reevaluate their urban planning to prioritize renewable energy and more sustainable choices, new opportunities open for mobility solutions that put a premium on health, equity, and environmental sustainability.
Then there is the continuing development of autonomous vehicles. I first heard about these over 10 years ago and, at the time, it was still controversial whether societies would allow AI (artificial intelligence)-driven vehicles to self-drive. These days, a lot of production vehicles already have some form of autonomous driving incorporated into its safety systems. It’s been a huge leap in the intervening years; in some parts of the world, autonomous vehicles are already allowed to ply certain roads (experimentally) within a controlled environment.
Furthermore, I have also seen a surprisingly fast rise in micro-mobility solutions in both Europe and Southeast Asia. Perhaps that is because they are convenient and affordable eco-friendly options for short-distance travel. They are compact and agile, and that makes them great for navigating crowded urban spaces. They are especially handy for first-mile and last-mile connectivity with other forms of transport. And as new cities invest in more infrastructure to accommodate micro-mobility vehicles for its inhabitants, it will surely surge further in popularity and play a growing role in shaping the future of urban mobility, especially in our region.
Speaking of these kinds of “smart” cities that support new-age modes of transport, we can foresee the expansion of public transport networks within them. Because the truth is, these are really more practical, efficient, sustainable, and inclusive. It is not difficult to understand how intelligent transportation systems and a sophisticated public transportation network can enhance the quality of life of its residents while simultaneously supporting economic growth and the health of its environment.
Therefore, I guess we can say that the future of mobility in Southeast Asia will be characterized by a shift towards more sustainable, efficient, and smart mobility solutions that will be tailored to address the region’s unique challenges.
LISTED telecommunications company PLDT Inc. has announced plans to bolster its home broadband infrastructure through its subsidiary PLDT Home.
The company aims to expand home broadband ports and invest further in modernizing submarine cables, PLDT said in a statement on Sunday.
“We are… confident we could do better this year, especially as we usher the era of hyper-fast Gigabit internet connectivity, introduce innovative products and services as well as vastly improve customers’ experience by fortifying the fiber network and hastening resolution of customers complaints,” Jeremiah M. De La Cruz, PLDT senior vice-president and head of consumer business, said.
PLDT has allocated between P75 billion and P78 billion for its capital expenditures this year.
The company intends to use these funds to expand home broadband ports and enhance submarine cable infrastructure, aiming to drive the company’s revenue growth.
“We actually want homes to grow even more. We’re going to accelerate the [fiber] rollout in 2024. We will have quite a significant rollout in new ports and new areas that will be fiberized in 2024,” Mr. De La Cruz said in a recent interview.
PLDT said that the company is also looking to fast-track its fiber-to-the-home (FTTH) footprint expansion.
In 2023, the company expanded its total fiber footprint to about 1.1-million cable kilometers, PLDT said.
“We will also leverage on the strength of PLDT’s fixed and wireless networks to deliver seamless connectivity, by introducing an industry-first ‘Always On’ service for customers to enjoy uninterrupted access for work, education, and entertainment even in cases of outages,” Mr. De La Cruz said.
As of the end of 2023, the total fiber subscriber count reached 3.2 million, with about 234,000 new subscribers added during the year.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
SHARON DECAPIA, Senior AVP for Marketing, PR & Sustainability of Watsons
Watsons keeps an eye on sustainability practices while expanding in the country
IN LIGHT of changing sustainability priorities within Watsons, the beauty and pharmacy chain of the A.S. Watson Group has added the phrase “Do good” to their slogan, “Look Good, Feel Great.”
In a group interview with Sharon Decapia, Watsons Senior AVP for Marketing, PR & Sustainability on March 7 at S Maison in the SM Mall of Asia complex, their sustainability goals for the rest of the year were shared, resting on pillars of people, product, and planet.
Discussing the “people pillar,” she said that aside from health and wellness initiatives for Watson’s employees, the company also supports Operation Smile, an organization which helps people with corrective surgeries for cleft conditions. In a medical mission last October, they sponsored 60 surgeries. According to a company press release, “Watsons Philippines’ goal is to perform 3,300 corrective surgeries on children with cleft conditions in the country alone by 2030.”
Watsons also has other medical missions in other fields: Ms. Decapia said that they will increase their number of medical missions this year to eight, from last year’s five, with the first one to be held in Tacloban, and the next in Tagbilaran. There, they will distribute free medicines and host free medical consultations, with added services like hair, skin, and bone analysis. “We’re a health and beauty company,” said Ms. Decapia. “It makes sense that we also extend free medical consultations and free medicines to these vulnerable communities that don’t have access.”
As for products and the planet, she noted that 34 of their stores are now powered by solar energy, and there are plans to have 100 of them running on solar power by the end of this year. Eighty percent of their stores (1,114 in the Philippines by her last count) have switched to paper bags (while the remaining plastics used are biodegradable) and they plan to increase the number of items in their sustainable line (qualified by environmentally friendly packaging or ingredients) to 13% from last year’s 11%, with a goal to hit 15% in 2025. They have also managed to collect 100,000 kilos of plastic in recycling bins in-store since 2021.
Ms. Decapia spoke about the profitability of sustainability: while the goals are great, they’re still a business, and the sustainability model should allow a business to operate, well, sustainably, in order to keep the trend of responsible consumerism going. For them, their goals affect both their marketing and consumption efforts.
“We have a specific group that monitors the actual savings in terms of electricity consumption and the corresponding peso savings,” she said. According to her, the investment in installing the solar panels and the other equipment is recovered in three to four years, and the succeeding years reflect savings.
Their research has showed that their market is primarily composed of Gen Zs and Millennials. “They are actually the generation that seeks for more sustainable options. That’s what we’re giving,” said Ms. Decapia.
On that note, their research also shows that a barrier that keeps consumers from adopting sustainable products and lifestyles is the perception of cost: buying with morals in mind can be expensive. “That’s what we wanted to debunk. At Watsons, you can have a range of options,” she said.
“Long term, of course we recognize the benefit,” she said of sustainable practices. “This is our planet. We need to be able to make sure that we get what we need now, but we also want to make sure that the future generation would be able to get what they need as well.”
Add to their store count, they plan to open 80 more shops by the end of this year. The renovations for their new flagship store in SM Mall of Asia (which might become the biggest in Asia, although Ms. Decapia said that the exact measurements are still pending) are almost complete, and it is set to reopen.
Paraphrasing Luke 12:48, Ms. Decapia said, “To whom much is given, much is expected.” — Joseph L. Garcia
Sealy and Ballet Philippines mix quality mattresses with ballet
SEEING ballerinas execute graceful leaps and lifts makes one wonder how the human body can be trained to peak condition for it. Mattress brand Sealy and Ballet Philippines (BP) put forth a piece of that puzzle.
The month of March bore witness to the launch of Sealy’s latest Posturepedic line — the Elevate Ultra Mattress Collection — which BP claims to be an optimal partner for providing ample sleep support for its ballet dancers.
Outside of that function, the Posturepedic line boasts a presence in many five-star luxury hotels in the Philippines. Those who want to have their own high-end mattress at home can purchase one from Sealy, with the Hotel Executive Luxury Plush starting at P207,000.
“The Elevate Ultra collection has been tested already in other markets like Singapore, and the reception was very good. It’s been there for a year already, so we’re now sure that it’s time to bring it to the Philippines,” said Focus Global, Inc. President Stephen D. Sy in an interview with BusinessWorld at the launch on March 14 in Bonifacio Global City.
He added that firm-support mattresses are more in-demand in the Philippines. In the new line, the Orthopaedic Series Spine Set fulfills this need, starting at P215,000 and geared towards firmness for ideal spinal alignment.
Meanwhile, the aptly named Royal Retreat, providing satisfyingly soft yet reliable sleep support, starts at P290,000.
The launch of the Elevate Ultra coincides with Sealy’s eighth year as part of the home furnishings store’s portfolio. “Over the past eight years, we’ve seen Filipinos rave about enhanced sleep with Sealy. It’s doing well,” said Mr. Sy.
Chee Yan Lee, Sealy Asia’s director and general manager, said in a speech that he “eagerly anticipates the ongoing success of Sealy in the region.”
Its sleep technology features include: align support titanium coils that cradle the spine, pressure relief as the mattress contours to the body, and breathability through the surface being naturally cool to the touch.
For Ballet Philippines president Kathleen Lior-Liechtenstein, partnering with the mattress manufacturer to “highlight the importance of proper support and comfort in improving physical and mental activity” was a no-brainer.
BP dancers briefly graced the launch to demonstrate this synergy, twirling on tiptoes and leaping and lifting amid the luxurious mattresses in the showroom.
“It’s a perfect synergy that enables our ballet dancers to awaken feeling rejuvenated, energized, and poised to perform with grace and harmony,” said Ms. Lior-Liechtenstein. — Brontë H. Lacsamana
LISTED gaming technology company DFNN, Inc. said its board has approved a plan to raise additional capital of up to P450 million through private placements.
This capital will be used to support the company’s expansion efforts in cybersecurity and artificial intelligence (AI), the company said in a regulatory filing last week.
The company’s board gave the green light on March 15.
DFNN aims to expand its business by venturing into cybersecurity and AI sectors, as well as by creating and acquiring new gaming platforms.
The company will also allocate a portion of the capital to pay taxes and fees associated with the issuance and listing of the new shares resulting from the private placements.
DFNN’s board also granted exclusive authority to Nautilus International Management Corp. to subscribe to and designate investors for the private placement.
“The board authorized the president and/or treasurer to accept the subscriptions and execute relevant subscription agreements thereto. The Board also delegated the authority to the management to set the price for the subscriptions,” DFNN said.
The company also set May 17 as the meeting date for its shareholders to ratify the private placements and approve their respective listing.
DFNN is an information technology provider and systems integrator.
The company said it has competencies in high volume and secure financial transactions, software or middleware development, IT support services, secure platform development, and turnkey implementations.
It also holds licenses for electronic gaming machines, a sports betting exchange, and digital and pari-mutuel games.
DFNN shares were last traded on March 15 at P3 apiece. — Revin Mikhael D. Ochave
The innovative vehicles confirmed or likely to arrive in PHL this year
By Dylan Afuang
IF YOU’VE BEEN following the goings on in local auto industry — hopefully through “Velocity” and, in which case, we extend our sincerest gratitude — you may have noticed a couple of trends that have been emerging lately.
Competitive upstarts from China have been vying for space in the Philippine market alongside established players that mostly hail from Japan and South Korea. The influx of electrified vehicles (EVs) coming from the world over is stronger than ever, as legislators and automakers embark on reducing the environmental impact of our motoring.
Of course, there’s no forgetting the car world’s responses to customer preferences for crossovers and SUVs.
Validating these trends is the flurry of motor shows and vehicle launches that happened here and abroad last year. The automotive year 2024 will likely be just as vibrant.
That said, we list the innovative models that are confirmed, or those that we predict, to excite and disrupt the local market today.
BMW 5 and i5 Touring
PHOTO FROM BMW
Last year, the official local distributor of BMW vehicles kept the wagon sector alive and stayed the course to electrification. To recall, SMC Asia Car Distributors Corp. launched the 3 Series Touring wagon and the i5 — the latter being the electrified version of its venerated, combustion-engined 5 executive sedan. Both powertrains are marketed here.
Nothing’s been confirmed yet, but the local BMW arm does present buyers a choice of electric or gas power, or sedan and wagon body styles (with the 3 Series), so could the 5 and i5 Touring make their arrival? The 5 and i5 Touring flex battery electric or hybrid power. Unique to these, however, is the added practicality and luggage space a family-friendly wagon can provide.
BYD Seal
PHOTO FROM BYD
This rising Chinese automaker could reasonably credit its worldwide recognition to the Seal. By virtue of its impressive performance and quality, BYD’s electric sedan has gained critical acclaim. As the brand is also trying to establish a foothold in Southeast Asia, local BYD distributor AC Mobility could contribute to that goal should it launch the Seal here.
Beneath the Seal’s sleek skin is the company’s proprietary Blade Battery — designed and developed in-house — whose lithium iron phosphate material uses less rare earth components and has a longer life than contemporary EV batteries. The battery also contains a smart module placement to make the battery smaller and lighter. Range and power is rated at 570km and 312hp, respectively.
Changan Deepal S7
PHOTO FROM CHANGAN
As reported before, Chinese player Changan is boosting its electrification strategy and will move 1.2 million cars outside its home market by 2030. The company’s sub-brands — such as luxury EV brand Deepal — carry the expectation to contribute to that figure. With Changan Auto in the Philippines, operated by Inchcape, Deepal is expected to enter the local market this year.
The S7 electric SUV could herald the brand’s arrival. Poised as an upscale offering, the S7 sports a sleek exterior with LED lights and luxury interior accoutrements. This Deepal — developed at Changan’s giant facility in Chongqing — produces 258hp and 320Nm, and sports a range of 620 kilometers in its top-of-the-range form.
Chery eQ1
PHOTO FROM CHERY
At last year’s Philippine EV Summit, Chery Auto Philippines showcased its own hybrid and battery electric vehicles that it calls new energy vehicles (NEVs), true to the Chinese state’s nomenclature. One NEV that stood out — despite measuring only 3.2 meters long — was an electric hatchback called the eQ1.
If Chery would sell the eQ1 here, it would surprise buyers with a long equipment list that belies its size. Within the hatchback’s 1.6-m width and 1.5-m height, the car displayed at the show featured a huge infotainment screen, power front seats, and a panoramic sunroof. It may not appear like it initially, but the eQ1 could accommodate four people.
Ford Bronco and Mustang
PHOTO FROM FORD
The American automaker is known for its brawny Bronco SUV and Mustang muscle car, and soon, Ford Philippines will bring the latest versions of the brand’s historic nameplates. Confirming the launch is the company’s recent opening of the order books for the two models.
In exchange for P4.998 million, the four-wheel drive Bronco packs a 330-hp 2.7-liter V6 engine and the promise of superior off-road abilities. Meanwhile, the legendary Mustang returns, with its P3.999-million range-topping model bringing a five-liter V8 pumping out 486hp and 567Nm. The power is sent to the rear wheels via a 10-speed automatic and advanced suspension damping.
Geely Geometry C
PHOTO FROM GEELY
Under local Geely arm Sojitz G Auto Philippines (SGAP), the brand’s Geometry is anticipated to join the electrification fray — with the C as the first offering here. No word on the official launch yet, but the local media have been given a preview of the C as SGAP welcomed its new president earlier this year.
With pricing projected to be below P1.6 million, the compact Geometry C is seen as a rival to the BYD Atto 3. In China, the C runs on a 70-kWh lithium-ion battery that powers one electric motor. Range is measured at 485km, while the equipment comprises a 12.3-inch touchscreen infotainment, head-up display, and adaptive cruise control.
Honda HR-V e:HEV
PHOTO FROM HONDA
In 2023, Honda Cars Philippines, Inc. (HCPI) launched the sixth generation of the CR-V — that also comes in hybrid e:HEV form. This began HCPI’s offering of the Japanese brand’s hybrid models. With an electrified Honda now in the scene, could more of the kind follow suit?
We imagine the HR-V, the compact SUV’s more compact stablemate, entering the market with hybrid power. Electric motors and a lithium battery pack work alongside a gasoline engine in powering the vehicle, in order to lower fuel consumption and emissions. This technology helps the HR-V e:HEV achieve an impressive 34kpl.
Hyundai Ioniq 5 N
PHOTO FROM HYUNDAI
What was once seen as a value South Korean brand is undergoing a brand renaissance. Hyundai has made vast developments in electrification and design, and the Ioniq 5 represents the brand’s accomplishments. Not long after its establishment, Hyundai Motor Philippines, Inc. (HMPH) began to offer the handsome and technologically advanced EV here.
Could HMPH launch the Ioniq 5 N here, then? Whether or not that materializes, the fact remains that this is the alpha version of the normal Ioniq. Made by the brand’s N division, the Ioniq 5 N boasts an aggressive exterior kit with 21-inch alloy wheels, and 650ps that’s dispatched to all four wheels — which results in a 3.4-second zero-to-100kph time and a top speed of 260kph.
JAC e-JS4 or e-JS1
PHOTO FROM JAC
Chinese car and truck maker JAC will see a new distributor in Astara Philippines. Next to other Chinese brands GAC and JMC, and French company Peugeot, this will be the mobility company’s fourth brand in the nation.
Reports say that Astara plans to expand JAC’s dealer network — and most notably, launch electrified cars — and improve consumer perception of the brand. This prompts the question: Will the e-JS4 and e-JS1 BEVs be imported into the nation? We’ll get our answer once the partnership between the brand and distributor further develops.
Jaecoo 7 and Omoda 5
PHOTO FROM OMODA
Jaecoo and Omoda will add to the roster of Chinese players in the country, as the two firms are confirmed to mark their entry at the 2024 Manila International Auto Show in April. Both brands are under the Chery umbrella.
The Jaecoo 7 and Omoda 5 EV will be the first offerings. Featuring internal combustion power and a wealth of tech, the 7 is poised to compete with its contemporaries offering similar equipment. On the other hand, 5 is promised to be a competitively priced EV with a range of up to 450km.
Kia EV5
PHOTO FROM KIA
As we reported late last year, Kia Philippines is slated to launch the Kia EV6’s compact sibling this year. The introduction of the EV5 supports the goal of Ayala Corp. (which operates AC Mobility that distributes Kia in the Philippines) to create an EV ecosystem.
The EV5 will join the EV6 in the local roster of the brand. Contingent on what overseas markets receive, the local EV5, which is assembled in China and Korea, may come in a larger 88-kWh battery pack or a 64kWh one. With the largest battery size in tow, the electric SUV has a range of 720km.
Lexus LBX
PHOTO FROM LEXUS
As you read this, the “Lexus Breakthrough Crossover” or LBX could be right here, right now (it actually launches today — Kap). Based on parent company Toyota’s GA-B platform, it’s the Japanese luxury brand’s most compact vehicle to date. The LBX is priced at P2.968 million.
Within its compact 4.19-m length and 1.82-m width are Lexus’ hybrid and luxury hallmarks. Fuel consumption is quoted at 22.72kpl, thanks to the LBX’s combined use of a 1.3-liter gas engine and electric motor. Moving inside the LBX’s well-crafted cabin, Mark Levinson audio, changeable mood lighting, and rich leather materials cater to the occupants.
Lynk & Co. 06
PHOTO FROM LYNK & CO.
United Asia Automotive Group, Inc. (UAAGI) is now the steward of another Chinese make — Lynk & Co. Globally, what’s positioned as an upscale brand is operated by Geely and Volvo (although the two brands have their own respective local distributors), and it joins UAAGI’s roster of brands — Chery, BAIC, and Foton.
Lynk & Co., which plugs itself as a “born digital” firm designed and engineered in Sweden, has manufactured one million vehicles since its establishment in Berlin in 2016. The 06 will be launched here at the Manila International Auto Show (MIAS) and enable more people to upgrade their mobility.
Maserati Grecale and Granturismo Folgore
PHOTO FROM MASERATI
From the likes of BMW, Lotus, and Porsche, the choices of fast, luxurious battery electric vehicles aren’t lacking. With its Folgore range, Italian marque Maserati has joined the realm of premium EVs. Aside from powerful combustion units, the Granturismo grand tourer and Grecale SUV are also electrified and so bear the Folgore name.
The Granturismo will be locally launched tomorrow; it and the Grecale Folgore could be exciting choices. For one, the Granturismo Folgore’s 800V design and three electric motors produce 761ps and 1,350Nm — and promise a top speed of 320kph and a 2.7-second zero-to-100kph sprint. Meanwhile, the Grecale can muster 557ps and a 220kph top speed.
Mazda MX-5
PHOTO FROM MAZDA
For nine years now, the “ND” MX-5 — the current iteration of Mazda’s legacy roadster — has been present in the Philippines and around the world. And last year, while the majority of its changes weren’t immediately obvious, the Japanese automaker subtly modernized the MX-5. Fans of the roadster will welcome it here, should Bermaz Auto Philippines introduce it.
New all-LED lighting units, including DRLs that are now integrated into the headlights, are part of the so-called “ND3” makeover. Two-liter-engined MX-5 manual cars have had their engine retuned for increased responsiveness, and their asymmetric limited-slip differential and steering response have been adjusted for enhanced cornering stability.
MG Cyberster
PHOTO FROM MG
The British-Chinese brand is decisively going electrified. Distributor SAIC Motor Philippines stated that, until 2025, at least eight MG models are planned to be introduced in the Philippine market — and that includes the MG Cyberster, slated to arrive in the first quarter of the year.
In our previous report, SAIC Motor Philippines President Felix Jiang stated that the Cyberster “embodies MG’s renowned British roadster heritage, (but) for the 21st century.” The Cyberster is powered by a 77kWh battery and, with 335bhp and rear wheel drive, MG claims a zero-to-100kph time of 4.6 seconds.
Mitsubishi Xforce
PHOTO FROM MITSUBISHI
The Xforce compact crossover is confirmed to debut in June and, like the Triton pickup, it’s expected to increase Mitsubishi Motor Philippines Corp.’s (MMPC) market share this year. Competing in a highly contested segment, the model is specifically designed for markets in Southeast Asia, Latin America, the Middle East, and Africa.
Fresh from its Indonesia debut, the Xforce was heralded among the winners of the iF Design Awards 2024 that recognized vehicles for their standout styling. Being a crossover, the Xforce boasts 220mm of ground clearance and a drive mode for rougher terrain, and features that buyers expect in the segment, such as digital infotainment and driver displays, to name a few.
Mini Cooper
PHOTO FROM MINI
The brands the Autohub Group distributes here are known for EVs. There’s the premium Lotus Eletre and the mainstream Segway electric scooters. So, while nothing’s been confirmed yet on exact timing, the company that also markets Mini could introduce the new Cooper: The latest generation of the famous bug-eyed hatchback that now comes with a choice of gas or electric power.
The Cooper Electric might bring its 181-hp or 215-hp electric drivetrains that are capable of an estimated range of up to 400km. As for the conventionally powered Cooper, its turbocharged gasoline mills can produce upwards of 200hp and yield a sub-five-second nil-to-century run. Inside the new Cooper cars are OLED infotainment screens and sustainable cabin materials.
Nissan Ariya
PHOTO FROM NISSAN
The Leaf electric hatchback is widely regarded as the first mass-market EV, and the second-generation of the model is part of Nissan Philippines, Inc.’s (NPI) local roster. Since the Leaf’s introduction, the Japanese car maker has boosted its electrification strategy with the Ariya, the brand’s first battery-electric SUV.
Given its range and positioning, the Ariya could compete in the premium EV sector, if NPI decides to bring it here. Among its powertrain choices, the Ariya can come with a 91kWh battery capable of over 500km of range, electric motors placed on the front and rear axles to create Nissan’s version of all-wheel drive called e-4orce, which generates 215hp and 300Nm of pull.
Peugeot E-2008
PHOTO FROM PEUGEOT
Would buyers like an electric Peugeot? When Peugeot Philippines previewed locally last year the E-2008 — whose “e” moniker denotes it as the battery-electric version of the French brand’s compact crossover — it probably wanted to gauge public clamor for such a vehicle. Since then, the E-2008 has been revised, and what could it offer — that is, if it comes here this 2024?
The EV’s letter “E” has been capitalized to better emphasize its means of propulsion. Subtle design tweaks abound in the car’s slinky shape, with the most obvious change found in the front end’s three-pronged LED “fangs.” Range is increased to 436km, and within the stylish cockpit Peugeot cars are known for, a larger infotainment screen with better connectivity is fitted.
Porsche Taycan
PHOTO FROM PORSCHE
Subtle styling tweaks and improvements on performance have been made to the famous and sporty four-door EV from the German auto marque. Considering that the Taycan has been serving the local demand for premium EVs, we’re guessing that Porsche could bring the updated model here soon or later.
The top-rung Taycan Turbo S banners the headline updates: Porsche claims that it runs to 100kph in 2.4 seconds, power is up to 940hp, and range is raised to 678km (176km more than before). Standard across the “Taycan 2.0” family, meanwhile, are active dampers for better handling, more power boosts, and improvements in battery charging and thermal management.
Toyota Tamaraw
PHOTO FROM TOYOTA MOTOR PHILIPPINES
A truck nameplate once famed here in Southeast Asia returns in a new, modern form — and it’s also slated to be produced in the Toyota Motor Philippines (TMP) Santa Rosa, Laguna, plant this 2024 to supply the model’s sale here. TMP had invested P4.4 billion for the model’s local production.
Like its predecessors, the new Tamaraw is poised to reliably serve many through commercial applications. A part of Toyota’s IMV (innovative international multi-purpose vehicles) 0 family, the truck can come as a passenger or delivery van or a pickup truck — thanks to its modular platform. A choice of gasoline or diesel engines promise reliable and efficient service.
Volvo EX30
PHOTO FROM VOLVO
Volvo Philippines introduced last year the XC40 and C40 Recharge compact crossovers — products of the Sweden-based auto marque’s transition to becoming a full-EV brand. Meanwhile, the brand’s smallest model — the EX30 — was introduced in foreign markets. This makes us wonder: Could the brand’s local arm bring the baby crossover here soon?
In typical Volvo fashion and like its larger siblings, the EX30 wears a minimalist design inside and out. The cabin, in particular, was reportedly made from sustainable and recycled materials. Powering the EX30 is a choice of single- or dual-electric motor setups — with the latter’s 428ps and 3.6-second zero-to-100kph time making the crossover the fastest Volvo so far.
Which innovative vehicle can excite the market the most this 2024?
The latest-gen Hyundai Santa Fe goes off script, and that’s just fine
WHEN THE RENAISSANCE of Hyundai in the Philippines was put into motion with the establishment of Hyundai Motor Philippines (or HMPH) under the leadership of its president, Dong Wook Lee, in June 2022 ago, one of the changes effected was the rationalization of the local lineup. It wasn’t just a matter of updating models, either. Another important consideration was to reckon where the actual units were coming from and if the resulting SRP as a function of taxes, tariffs, and logistical expenses would make them price-competitive versus the competition.
At any rate, after all was said and done, Hyundai effectively shed its sedans (plus two small crossovers) and brought in new MPVs and SUVs, along with its highly competitive (in both pricing and looks) electric vehicles in the Ioniq 5 and 6.
Still, a couple of iconic nameplates have continued to remain relevant globally, and it made sense for Hyundai to continue to bring in their updated iterations here. One of them is the Tucson compact SUV; the other is the larger Santa Fe, whose all-new version finally went on sale in showrooms across the country recently.
Following a December 2023 preview, HMPH afforded select members of the media some brief, albeit meaningful, seat time with the three-row, midsize SUV.
Addressing the elephant in the room, HMPH Sales Training Supervisor Jay Galvez conceded that, yes, the Santa Fe calls to mind the boxy profile of the Land Rover Defender — surely a consensus for many a scribe and “influencer.” In fact, it looks more like a Defender than the outgoing older Santa Fe sibling it replaces.
“The fifth generation has become boxy… and we at HMPH say that it’s okay to compare it to the Defender. (We’d like to think) that it’s an affordable version of it,” he said.
Bannering the all-new Santa Fe is a larger interior, a so-called “plus alpha” philosophy connecting “outdoor-indoor living.” This is expressed in the fully collapsible second- and third-row seats which make full use of the space within. HMPH said in a release that this feature yields a cargo bed perfect for “groceries, home projects, sports and recreation, or camping trips.” The maximum load space with all the seatbacks down is 1,156 liters.
“We will market this as camping-friendly, for use in different outdoor activities,” underscored Mr. Galvez in his presentation.
One of the strongest points of the Santa Fe is also arguably one of its more polarizing features. The tailgate extends to the sides of the vehicle — allowing a wider (by 145 millimeters over the fourth generation) opening for easier loading and unloading. However, this has necessitated the move of its rear combination to the tailgate itself. It may be niggling observation, but I think these lamps sit a tad too low for my taste.
Overall though, give the Santa Fe’s designers a tip of the hat for imbuing the vehicle an aggressive though neater profile even as it grows significantly (45-mm longer and 95-mm taller). Couple this with a shorter overhang and longer (by 50mm) wheelbase which allow the occupants to benefit from the resulting increased interior space.
And despite resisting the ever-present inclination toward sharper (i.e., wedgier) designs, the Santa Fe remains Cd-conscious — cutting down on wind drag through angled side mirrors, active air flaps in the top and bottom of its front bumper, skid plates, and spoiler.
A bridge-type roof rail exists alongside a dual sunroof, and the Santa Fe adds a thoughtful touch to provide easy access to that roof-mounted accessory: a so-called C-pillar assist handle you can grab on to lift yourself up. With a capacity rated at 200 kilograms, it can also be used when you’re, say, cleaning the roof.
The Santa Fe abounds with “H” easter eggs in its design — said to be another aspect of its new brief. From the H-shaped LED lamps with DRLs and lower bumper garnish in front, to the similarly shaped taillights, there are lots of Hs to count outside and inside. The mood lighting of the front dash is H-shaped, as are the air-conditioning vents and even seat stitching. A couple of online reviewers from the US counted more than 70 of these H elements, in fact.
Another quaint execution in the Santa Fe sees the gear shifter moving to the steering column as a shift-by-wire stalk, much like the one found in the Ioniq 5 and 6.
It is a mostly digital affair in the cabin, led by a free-standing 12.3-inch panoramic curved display instrument cluster attached to an infotainment screen of the same size. On the left of the dual screens is a fingerprint recognition system that allows multiple users to program seat memory and infotainment system preferences.
A UV-C sterilization compartment is on the upper right side of the dash. “Since the Santa Fe was conceptualized during the pandemic, this has been retained for the users’ health and sanitation,” reported HMPH. Meanwhile, a full-touch climate control panel is on the center stack and under it is a dual wireless charging pad. There are more charging options within, via six USB-C ports, and a 12V socket. As for storage compartments, there is space in between the front row seats, and a thoughtful bi-directional console box with a lower sliding tray.
Powering the highest variant (2.5T Calligraphy 8DCT AWD), is a turbocharged 2.5-liter mill mated with an eight-speed dual clutch transmission; output figures are 281ps and 422Nm. Drive and terrain settings “can be adjusted based on user preference on the engine power map, transmission patterns, stability control and braking.” Its modes are Normal, Eco, Sport, Smart, Auto, Sand, Mud, and Snow. The company’s proprietary Hyundai Traction (HTRAC), basically its AWD system, benefits from Downhill Brake Control, “that supports sudden changes in weather or difficult terrain.”
Standard on all variants are driver, passenger, side, and curtain air bags — in addition to a suite of safety features called the Hyundai SmartSense. The list of advanced driver-assist features include: Smart Cruise Control with Stop and Go, Forward Collision Avoidance, Lane Following and Keeping, Blindspot View Monitor, Reverse Parking Collision Avoidance, Parking Distance Warning, Manual Speed Limit, Rear Occupant Alert, and Surround View Monitor.
During our aforementioned advance jaunt with the Calligraphy variant of the Santa Fe, we were familiarized with the convenient (not overly light) steering of the vehicle and its surprising maneuverability despite its hulking size. And when making abrupt turns and taking corners at speed, the SUV displays some lean yet isn’t too soft or jarring. Flooring the throttle from a standstill shows it is light on its feet, and can stop in a surprisingly short span. Finally, it’s not all about looks either. Taken through an off-road section meant to showcase articulation, the Santa Fe kept its composure and soaked up the terrain most nicely.
You could very well say that through this boxy Santa Fe, Hyundai has shown it can, well, think out of the box.
HMPH said the all-new Santa Fe will be a part of the Hyundai Mobility Experience tour, which resumes on March 22 to 24 at the Ayala Malls Glorietta in Makati City, and is slated to head out to other cities outside Metro Manila. For more information, follow the company on Facebook and Instagram (hyundaimotorphilippines).
