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4 auto industry trends in the new normal

As the sector gets up to speed, new pathways appear on the horizon

By Kap Maceda Aguila

FISH OUT that crystal ball from wherever you stashed it and give it a once-over. We’re going to need it to look at the (near) future of the local auto industry. But I digress. Ball-gazing is so passé; any self-respecting person of science and logic already has so many tools at his/her disposal.

Car companies have been allowed to open shop and restart the long shuttered casa for a while now. Of course, operational capacity has been curbed to (ideally) 50% to reflect the number of employees allowed on site for physical distancing considerations. If you’ve been checking out press releases and announcements of auto brands, it’s not easy to glean a pattern that helps define a not-so-new normal way of moving forward and conducting business. Since we all love listicles, let’s do that now.

1. All hail the digital showroom. Sure, any self-respecting auto brand has a virtual presence (website, social media) where we can check out offerings, services, and other goings on. Largely though, this domain had just been an adjunct to the real (i.e. physical) experience. The showroom was the primary showcase brands leveraged not just to display vehicles but, verily, all that they stand for: hospitality (or lack thereof), design ethos, luxury/practicality, service. While real dealerships and showrooms have opened, a growing number of marques have unveiled so-called digital showrooms — essentially microsites that remove much of the fluff of the original website to gear the experience specifically for people browsing models. We spy a few commonalities among brands: easy availability of pricing information, quick links or access to notify a sales agent of your desire to buy, and a function to “e-inspect” a vehicle. To be honest, some or all of these may have been possible on the main website, but the experience in a digital showroom is sleeker and more keenly curated for your e-shopping pleasure.

2. It’s a buyer’s market. This one we saw from miles away, right? As car companies were basically kept from selling vehicles for about three months, many had hemorrhaged as income was halted. The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association (TMA) jointly reported a sales total of 11,029 units in March — a 63% free fall compared to the same month last year, when the group tallied 29,790 units. CAMPI President Atty. Rommel Gutierrez said in a release that “the double-digit negative growth recorded in March 2020 is the weakest monthly performance of the auto industry so far.” And that was March — with about two weeks of normal selling activities. Wait until we get to April and May numbers, said a car executive to me. But relief should be coming if people bite into a number of tantalizingly great deals from a number of auto brands. A handful of luxury brands are heavily discounting their products, (up to a million pesos and beyond). People contemplating getting vehicle this year before the pandemic happened have a lot more thinking to do as the repriced and repackaged pickings are aplenty.

3. Virtual launches will be the norm. The Ford Everest Sport’s launch last May 21 was bittersweet. While it symbolized a determined stand of business in this age of COVID-19, it was also a reminder that we just cannot simply pick up where we left off. It was surreal to see media colleagues in little Zoom squares and not in some large venue where we’d wait for a vehicle to roll in or be unveiled. But this is a norm that we have to and can live with if we want to keep everyone safe from the opportunistic coronavirus. Since that day, a handful of brands have revealed new models through the digital medium (with a couple of launches scheduled this week, actually). If there’s a silver lining to this, it’s that more people can actually check out the spectacle of launches (those opened to them, anyway), and benefit from the production of materials for the digital medium.

4. “Used cars” and “downgrading” might trend. Toyota Motor Philippines (TMP) probably did some gazing into its own crystal ball and saw an impending shift in local market preference toward pre-loved cars. Last week, TMP sent out word that it is pushing its TCUV (Toyota Certified Used Vehicles) brand. One of its so-called value-chain programs, TCUV vets used Toyota vehicles via a “rigorous 211-point inspection and certification procedure” to remove the guesswork and uncertainty. Come to think of it, the underlying thinking is easy. As companies across a range of industries have been savaged, with unemployment climbing to a record high of 7.3 million, those fortunate enough to keep their jobs need to be generally prudent in their spending, so they might be nixing the idea to get a brand-new vehicle in favor for a more inexpensive used vehicle. Another sentiment I’ve heard expressed is that since people basically have no choice but to bite the bullet on vehicle acquisition (in view of hampered public transportation), they can “responsibly” fill the need of getting a Point A-to-B vehicle by getting a cheaper ride. Instead of a mid-size SUV, the head of the family might opt for a small crossover or even subcompact sedan.

SEC renews call for debt relief

LENDING companies are again asked to assist borrowers by offering debt relief measures to cope with the coronavirus disease 2019 (COVID-19) pandemic.

In a notice on its website, the Securities and Exchange Commission (SEC) said it “strongly encourages” financing companies, lending companies and microfinance non-government organizations to roll out initiatives that will help ease the financial burden of borrowers.

Among the measures it suggested are lowering interest rates, waiving or reducing penalties, offering a payment holiday, allowing debt consolidation, extending the term of loans and providing flexible payment schedules.

It said other programs that the lenders may come up with to help give financial relief to borrowers are also welcome.

These measures are aside from the mandatory grace period that the SEC imposed on lenders through Republic Act No. 11469 or the Bayanihan to Heal As One Act.

To recall, the SEC earlier required lenders to apply a 30-day grace period for all loans with principal and/or interest due during the enhanced community quarantine period, or from March 17 to May 31.

On top of requiring a grace period, the SEC also prohibited lenders from imposing interest on interest, fees and other charges to future payments or amortizations. Interest accrued during the grace period were also allowed to be paid on a staggered basis over the remaining life of the loan.

These requirements have been lifted for loans that are due starting June 1, or when the government eased the lockdown measures to a general community quarantine.

The SEC recognized that while the quarantine is gradually being lifted, the COVID-19 pandemic had an adverse impact on the finances of Filipinos, hence its plea to lenders to continue giving debt relief.

The Labor department earlier reported some 2.6 million Filipinos lost their jobs during the pandemic. Labor Secretary Silvestre H. Bello III projected some 10 million Filipinos might lose their jobs this year.

Earlier, several lending and financing companies announced extended loan payment deadlines due to the quarantine. Some of these are BDO Unibank, Inc.; Metropolitan Bank & Trust Co.; Bank of the Philippine Islands; Rizal Commercial Banking Corp.; Union Bank of the Philippines; East West Banking Corp.; China Banking Corp.; CIMB Bank Philippines; and Philippine Savings Bank. — Denise A. Valdez

Toyota anticipates heightened demand for used cars


TOYOTA MOTOR Philippines Corp. (TMP) acknowledges the transportation challenges brought about by the COVID-19 pandemic, and that these have “convinced a number of commuters to seek personal modes of transport.” But these times are challenging ones financially as well, so customers are looking for affordable deals on brand-new cars, while others are expected to opt for used cars.

In a media release, TMP said that even as certified used cars play an important role, the proliferation of used-car websites and outlets make it understandably difficult to discern which ones can deliver the best quality and value. Toyota’s Certified Used Vehicle (TCUV) program addresses exactly this by bringing peace of mind to the customers through pre-owned cars certified by Toyota Motor Philippines (TMP).

TCUV is one of TMP’s value-chain programs offering customers used vehicles that have gone through “a rigorous 211-point inspection and certification procedure” before being classified as “certified used vehicles.” Cars offered by TCUV dealers come with additional limited warranty and are also qualified for flexible financing terms with Toyota Financial Services.

Said TMP Assistant Vice-President for Value Chain Section Gener Castillo, “Recently, most of those who inquire from our TCUV dealers are commuters who regularly use public and mass transport to get to work or to carry out essential trips for their family’s needs… This could mean there is increased demand for personal mobility among those who see having a car as a need, but would like a more affordable option and an easier way to get financing approval without compromising quality, efficiency and safety.”

Presently, only select Toyota dealers offer TCUV units. For Luzon and Metro Manila, these are Toyota Alabang, Toyota Balintawak, Toyota Batangas, Toyota Bicutan, Toyota Calamba, Toyota Dagupan, Toyota Global City, Toyota Manila Bay, Toyota Pasig, Toyota Pasong Tamo, Toyota Plaridel, Toyota Quezon Avenue, and Toyota San Pablo.

For Visayas and Mindanao, authorized TCUV retail outlets are Toyota Cagayan de Oro, Toyota Iloilo, Toyota Lapu-Lapu, Toyota Cebu City, Toyota Mandaue North and South, Toyota Tacloban, and Toyota Talisay.

Aside from offering certified used cars, TCUV dealers also perform the sourcing of vehicles from current Toyota customers who wish to upgrade by trading in or selling their vehicle at fair value. A team of highly-skilled and accredited assessors thoroughly check the vehicle under transparent operation to guarantee that the Toyota owner gets the fair value of their vehicle.

TCUV sourcing outlets are all the aforementioned dealers plus Toyota Abad Santos, Toyota Angeles, Toyota Butuan, Toyota Calbayog, Toyota Cubao, Toyota Dasmariñas, Toyota Makati, Toyota Marikina, Toyota Marilao, Toyota North Edsa, Toyota Otis, Toyota San Fernando, and Toyota Shaw.

For more information customers may directly inquire at any TCUV dealer. For updates about Toyota’s products and services, visit https://toyota.com.ph or join TMP’s official social media accounts at facebook.com/ToyotaMotorPhilippines, twitter.com/ToyotaMotorPH and Instagram.com/toyotamotorphilippines.

PSE: Investment scheme misrepresents bourse

THE Philippine Stock Exchange, Inc. (PSE) is warning the public against a fraudulent investment scheme run by an individual pretending to represent the bourse operator.

In an advisory over the weekend, the PSE said it received reports that someone is soliciting investments from the public through an e-mail address bearing its name: philippinesstockexchange@gmail.com.

“For the information of the public, no such investment solicitation was issued by the PSE nor does it solicit investments from individuals,” the PSE said in the memo.

The e-mail address supposedly solicits an initial investment of P24,900 up to P135,500 from the public, with a guaranteed return of 45-62%. Payments were offered to be done online or in any office of the PSE, citing its offices in Taguig City and Cebu City.

“The PSE would like to remind the public that all stock market transactions should only be coursed through PSE-accredited trading participants or stock brokerage firms,” the bourse operator said.

It also noted all communication from the PSE are coursed through its official website, e-mail address and social media accounts.

“We encourage the public to inform the PSE if they have been sent these investment solicitations via e-mail or any other unauthorized investment solicitation purportedly from PSE,” it said.

The PSE may be contacted by calling its hotline (+632) 8876-4888 or sending an e-mail to investing@pse.com.ph. — Denise A. Valdez

Recycled fabrics highlight Zegna’s Winter 2020 collection

EXPERIMENTAL and recycled fabrics are the highlights of Italian fashion brand Ermenegildo Zegna’s Winter 2020 collection.

Weeks before Milan’s first Digital Fashion Week, Italian brand Ermenegildo Zegna showed off its Winter 2020 collection to the press through an exclusive website.

Italy’s Camera Nazionale della Moda Italiana (National Chamber of Italian Fashion, shortened sometimes to Camera della Moda), said in a release last month, “Camera Nazionale della Moda Italiana presents the first Milano Digital Fashion Week — July Issue, from July 14th to July 17th, an event promoting men’s and women’s collections. This is a concrete response to the need for promotion and business on the part of Brands, which will be able to present, on a digital calendar, their Spring/Summer 2021 men’s collections and Spring/Summer 2021 men’s and women’s pre-collections. The initiative is in line with a raft of concrete responses to the recently changed scenario in the fashion industry.”

Milan Fashion Weeks slated for June and September had been canceled.

The Zegna brand was founded in 1910 and is still operated by the Zegna family. It is the largest menswear brand in the world by revenue, according to the Financial Times,which reports a revenue playing at around a billion euros. In the Philippines, Ermenegildo Zegna is distributed by SSI.

The XXX collection takes sustainability seriously with the hashtag #UseTheExisting, with outfits made with a percentage of recycled fabric from its factories. Among these is a double-breasted coat closed not with buttons, but a knot.

“Fabrics get more and more experimental, further expanding the #UseTheExisting approach in weaves and mixes of natural with synthetic fibres,” says a press release. “Patterns such as moirè, macro check and digitalized landscapes are rendered in print, jacquard and devoré techniques — alone, or mixed — playing with layers and scales. Even plain fabrics like recycled cashmere flannel or Achillfarm, the suiting wool made entirely from the remnants of suit-making, are highly innovative.”

Zegna also has a collaboration with American brand Fear of God, which was previewed last March in Paris.

Speaking of Jerry Lorenzo, the founder of American brand Fear of God, Fear of God, Zegna’s artistic director Alesandro Sartori said, “The collection speaks to our audience just as it does Jerry Lorenzo’s, but we believe it can also appeal to a new client, thanks to the mix of Zegna’s impeccable tailoring and Fear of God’s concept of laid-back luxury. We have worked with great balance, without our ego’s ever surpassing one another, to create a unique new wardrobe. A perfect synthesis of our two souls: clothes to wear at any time of the day in order to feel good. And this is only the beginning, as our conversation has just begun.”

The collection’s objective, according to a press release is “identifying and following a new path of masculine elegance that is also wearable for women, the frank and authentic conversation between two apparently distant worlds defines an immediate and contemporary wardrobe. A new vocabulary that proposes aesthetic canons that are as free from pre-built models and gender paradigms as possible.”

The collaboration features lightweight suits that just about hang on the body, instead of wrapping it like a second skin. Belts and accessories are decidedly bohemian, tied around the waist and falling a bit above the knee. Streetwear aesthetics with brand names in bold typeface are seen here, as well as pinstripe creations in loose fits reminiscent of zoot suits. A heavy wool cardigan was paired with what appears to be track pants, in keeping with the current age of casual comfort.

As BusinessWorld noted about the fashion shows shown via livestream earlier this year, a lot of drab and sober grays were on the color palettes on the runways, and Zegna was no exception. The Modern Tailoring collection, with a more classical bent, also uses recycled fabrics, and follows the same principle to #UseTheExisting. “It is our aim to produce pieces with style that are long-lasting and responsible,” said a release. The more casual and forward Zegna collection, meanwhile, praised the modern dandy with eye popping shades of red, with a nod towards streetwear but still distinctively preppy (think of a schoolboy who covers up his uniforms after school to look cool). The meeting of two worlds isn’t limited to the aesthetic. It extends to the material, seeing as a lot of the pieces were executed in an innovation called Techmerino, a fabric exclusive to Zegna, made of Merino wool that had undergone processing in order to enhance it. “The notion that there is no luxury without sustainability is the only way forward,” said Mr. Sartori.

The collections had already been seen earlier this year. Its first ever collaboration, with American brand Fear of God, was previewed last March in Paris, while its XXX collections were seen at Milan Men’s Fashion Week. It was almost as if the grays on the runway and the recycling measures were a portent of the coming difficulties. Just a few months later, parts of Italy had been placed under lockdown due to the COVID-19 pandemic. Italy has been one of the hardest-hit regions by the pandemic: according to a June 9 report by Reuters, the number of confirmed cases rose up to 235,278. — Joseph L. Garcia

Buy now, pay later, and low monthly plans from Ford PHL

FORD PHILIPPINES presents easy vehicle acquisition plans this June via special deals and promotions for its pickups, SUVs, and Ford Transit van.

Said Ford Philippines Marketing Director Ryan Lorenzo in a release, “With our special offers this month, we are making our Ford vehicles accessible to more Filipinos especially during these challenging times. With our easy-to-own plans, low monthly fees, freebies, and cash discounts, customers can choose which option best matches their purchase preferences. Now, it’s easier and more convenient to own a Ford vehicle.”

With a starting retail price of P943,000, the Ford Ranger 2.2L XLS is now available for P9,999 low monthly amortization, an all-in low down payment of P88,000, or zero interest through 24 months. Customers purchasing a Ranger 2.0L Bi-Turbo Wildtrak 4×4 get a P100,000 cash discount. When availing of this variant via financing promo, buyers can get zero interest for up to 18 months. Ranger 2.2L FX4 and XLT variants are available with a cash discount of P90,000 or via a financing promo of zero interest for up to 18 months.

Customers can also take advantage of Ford’s deals across its SUV lineup. As a new offer, those who buy any EcoSport variant via a financing promo can avail of a free four-month amortization. Those who prefer to pay in cash can get a P100,000 cash discount for all EcoSport variants. Alternatively, customers getting the EcoSport 1.5L Trend MT have the option to avail of the P68,000 all-in low down payment.

The Expedition 4×4 Limited MAX with Bucket Seats, Expedition 4×4 Limited MAX, and Explorer 3.5L Sport V6 EcoBoost AT are now offered through a financing promo of zero interest up to 36 months with a 20% down payment.

The Explorer 2.3L Limited EcoBoost AT is available through financing at zero interest up to 24 months with 20% down payment, while the Expedition 4×4 Limited MAX is available with an P88,000 all-in low down payment.

Customers who purchase the Everest 2.0L Bi-Turbo Titanium+ 4×4 AT and Everest 2.0L Turbo Titanium 4×2 AT variants are entitled to a P50,000 cash discount. On the other hand, the Everest 2.2L Trend 4×2 AT has a P25,000 cash discount.

Rounding up the deals available this month is for the Ford Transit, where customers getting the 15-seater Ford van will get cash savings of up to P301,000 together with a free five-year scheduled service plan. All deals are available until June 30, 2020. For more details, visit any Ford dealership or check out www.ford.com.ph/shopping/hot-deals/2020/retailoffers/.

PHL currently self-sufficient in poultry after lockdown dampens demand for imports

DOMESTIC chicken production is currently sufficient to meet demand, after a sharp drop in May poultry imports due to trade disruptions caused by the pandemic, the Department of Agriculture (DA) said.

In a statement, the DA’s Bureau of Animal Industry (BAI) said that the volume of poultry meat imports fell 23% to 33,000 metric tons (MT) in May, significantly lower than the 43,000 MT posted in January.

According to the BAI, around 70% of total poultry imports were composed of items produced industrially such as mechanically deboned meat, fat, offal, and rinds.

Agriculture Secretary William D. Dar said the DA’s commitments include boosting the productivity of the Philippine poultry sector.

“I have always emphasized our goal to increase local food production, poultry included. We will, in every step of the way, assist our local raisers in whatever way we can,” Mr. Dar said.

The DA said it has implemented a national livestock program (NLP), which aims to strengthen the industry.

“The NLP is a multi-million-peso package to support the recovery of the country’s livestock and poultry industry, amid the coronavirus disease 2019 (COVID-19) pandemic, and ensure the production and supply of safe, affordable, and adequate food for Filipinos,” the DA said.

BAI Director Dr. Ronnie D. Domingo said that the oversupply of poultry products is due to the decline in demand, after the government implemented the lockdown.

“The lockdown has created tremendous trade limitations among producers, retailers, and consumers. There were partial operations or full closure of local businesses, causing loss of income for consumers,” Mr. Domingo said.

Mr. Domingo said that the National Meat Inspection Service (NMIS) has reported that aside from accredited cold storage facilities, excess meat was stored in plug-in refrigerated vans, which can be considered a food safety risk.

As a result, Mr. Dar has directed the NMIS to secure the cold storage facilities and prevent excess meat from being stored in unaccredited cold storage systems.

“We understand the plight of the local poultry industry. That is why we have pursued constant dialogues with key industry leaders since the start of the imposition of the quarantine measures in the country,” Mr. Dar said. — Revin Mikhael D. Ochave

MerryMart debut marks volatile year’s first listing

By Denise A. Valdez, Reporter

MERRYMART Consumer Corp. (MerryMart) is set to list its shares and begin its maiden trading at the Philippine Stock Exchange (PSE) today.

The grocery operator of businessman Edgar “Injap” J. Sia II will hold its bell ringing ceremony at the opening of the market at 9:30 a.m. Its shares will trade on the small, medium and emerging (SME) board of the PSE.

MerryMart offered 1,594,936,709 shares to the public at P1 each from May 27 to June 5. It tapped PNB Capital and Investment Corp. as lead underwriter, issue manager and bookrunner for the offering.

The company is the first to do an initial public offering (IPO) this year after the coronavirus disease 2019 (COVID-19) pandemic challenged economies and pulled the local market to historic lows in March.

The PSEi has remained volatile throughout the past months. It started the year closing at 7,742.53 on Jan. 2, hit a low of 4,623.42 on March 19, and has since started recovery to close at 6,476.24 on June 11.

Mr. Sia, chairman and chief executive officer of MerryMart, told BusinessWorld on May 23 the company remains committed to its expansion plans despite the COVID-19 threat.

“We see this year 2020 as the new beginning of the next decade and both DoubleDragon and MerryMart will continue to pursue its goals to make it more and more entrenched in the Philippine market as years go by,” he said, referring to his other listed firm, DoubleDragon Properties Corp., which itself is planning a real estate investment trust (REIT) offering in the fourth quarter.

MerryMart said in a previous statement it believes it will perform well amid the pandemic because its business is in the non-discretionary basic essential retail category. It also said it intends to focus on this segment.

The company is targeting to have 1,200 branches across the country by 2030, with 100 branches as early as the fourth quarter of 2021. It also has plans to put up warehouses and distribution centers in DoubleDragon’s CentralHub warehouse complexes.

Despite the company’s optimism, Philstocks Financial, Inc. said it recommended investors not to subscribe to MerryMart shares at P1 each because it considers this overvalued.

“On its debut, it’s going to be an actively traded stock, could be volatile, and could possibly still have an upside just like the performance of other debutants… However, traders should take note that market capitalization of (MerryMart) is way bigger than (that of other market debutants), and we think that fundamentals will take over in the long run,” Philstocks Research Associate Claire T. Alviar said via text.

“We’re still seeing an upside on its first day given only the excitement of traders, evidenced by the performance of recent debutants with small caps, but we think that if investors consider fundamental value, the stock might decline below its IPO price in the long run,” she added.

Amid the pandemic, Kiehl’s does good online

AMERICAN skincare brand Kiehl’s announced that despite strict lockdown restrictions due to the pandemic, the company has grown its sales on the back of its online platform on Facebook, a local executive said.

“[Our online sales] has been doing extremely well, [it grew] five times from March to May in terms of sales value,” Inha Arceo, Kiehl’s Philippines senior product manager, told BusinessWorld during an interview on June 10 via Skype.

The brand has already opened 14 of its 16 brick-and-mortar stores in the country and Ms. Arceo said the “results are very, very encouraging” and that she thinks “we’re actually on the road to recovery,” as some stores were experiencing the same sales from before the quarantine started.

“We’re still seeing positive growth for the brand until the end of the year for both online and offline boutiques,” she said.

And even if the physical stores are now open -— and following proper social distancing measures like limiting the number of people inside the store at one time, she said — Ms. Arceo noted that the digital channel will still grow and said that it got new customers online. She noted that 50% of Kiehl’s Philippines online customers are people who had not tried Kiehl’s before.

The brand’s serums remain the bestsellers with the Clearly Corrective Dark Spot Solution, Powerful Strength Line Reducing Concentrate, and Midnight Recovery Concentrate leading the pack, because “these are the products that have a lot of reviews and a lot of positive feedback from customers who really use them,” Lerizze Tan, product manager, said in the same interview.

“For at least the next few months, we’re expecting less foot traffic but we’re also seeing that customers would buy more in one go — that’s why sales results have been very encouraging for us,” Ms. Arceo said.

The encouraging numbers made it possible for the company to look at opening a new store by the fourth quarter of the year although no concrete plans have been set.

NEW PRE-SERUM
Kiehl’s has been growing its sales numbers despite having lockdown measures in place and the brand, on the back of that success, launched the newest addition to its bestselling serum line: a pre-serum meant to address signs of aging due to skin stressors.

Called the Vital Skin-Strengthening Super Serum (P3,200 for 30ml), the product is said to “protect the skin against stressors that weaken the skin’s barrier” including sun exposure, pollution, stress, lack of sleep, diet, and temperature, all of which can lead to early signs of aging, according to a release.

The serum’s core ingredients include a smaller molecule of hyaluronic acid, which attracts moisture to the skin and the Kiehl’s version is claimed to be small enough to penetrate “eight layers of the skin.”

Other active ingredients include red ginseng root, holy basil, and schisandra berry. These ingredients are meant to “defend skin from stressors while renewing and resurfacing skin’s texture for a smooth, radiant appearance,” said the release.

It should be noted that the serum has denatured alcohol as its fourth ingredient, but Yricka Dela Pena, the brand’s education manager, told BusinessWorld that the alcohol is US Food and Drug Administration (FDA)-approved and is used for the serum’s texture and is “proven safe.”

As a pre-serum, the new Vital serum is recommended to be used before other Kiehl’s serums but it should not be used around the eyes. So the routine would look like this if you use the new serum: Cleanser, toner, eye cream, Vital serum (as pre-serum), serum, moisturizer, and sunscreen (for day).

The product promises to improve skin texture, boost skin radiance, improve resilience, visibly reduce fine lines, and double skin strength within four weeks. It is said to also be suitable for all skin types including sensitive skin.

The Vital Skin Strengthening Serum is available on the Kiehl’s Philippine Facebook page and physical stores. — Zsarlene B. Chua

Big June discounts offered on select Jaguar, Land Rover vehicles

ALL BRITISH CARS (ABC), authorized dealer of Jaguar and Land Rover vehicles, parts, and accessories in the Philippines, rolls out major discounts on select models of the two UK luxury car brands this month.

The F-Pace, Jaguar’s first SUV and winner of the Car Design of the Year and Car of the Year plums when it debuted in 2016, is said to bring together “the supercharged performance of a sports car and practicality of an SUV.” The F-Pace S, which carries the same 3.0-liter engine as the F-Type, is now available for P890,000 less (from P8.99 million to P8.1 million). Speaking of the F-Type, ABC slashes its price by P1.39 million (from P9.99 million down to P8.6 million). Equipped with a supercharged petrol V6 engine that delivers 380ps and 460Nm of torque, the luxury sports car can reach 100kph in 4.9 seconds.

Hefty price cuts are also available on the Jaguar XE sports saloon (P200,000), XF business saloon (P200,000), and other variants of the F-Pace. Customers can book a virtual appointment by contacting (02) 8784-5003 or +63 919-068-2798.

Meanwhile, Range Rover, started by Land Rover brand in 1970, celebrates its milestone 50th anniversary this year, and ABC also extends generous discounts on selected Land Rover and Range Rover models.

From P12.49 million, the Range Rover Vogue 3.0 Diesel is now priced at P10.8 million. The luxury SUV is equipped with 20-way heated electronically adjusted front seats with memory function, Meridian surround sound system, panoramic sliding roof, and electronic air suspension.

The Range Rover Velar R-Dynamic HSE goes for P8.6 million (from P9.99 million) — powered by a 3.0-liter supercharged six-cylinder petrol engine delivering 380ps and 450Nm. It reaches zero to 100kph in 5.7 seconds, has 20-way heated and cooled front seats with massage and memory function, electronic air suspension, and Meridian surround sound system. There are only four units available of this model. Discounts are also available for buyers of the Range Rover Sport (up to P1.69 million) and Range Rover Evoque (up to P790,000). Buyers can book a virtual appointment by contacting (02) 8784-5003 or +63 919-068-2798.

T-bill rates may move sideways

RATES OF Treasury bills (T-bills) to be auctioned off this week will likely move sideways as the central bank signaled a pause in monetary easing, with inflation slowing last month.

The Bureau of the Treasury (BTr) on Monday will offer P20 billion in T-bills, broken down into P5 billion each in 91- and 182-day papers and P10 billion in 364-day securities.

On Tuesday, the BTr is planning to borrow P15 billion via the 35-day papers.

Noel S. Reyes, first vice-president and chief investment officer of the Asset Management Group at Security Bank Corp., said yields on these short-term papers will likely move sideways or inch slightly lower from the previous auction.

“BSP (Bangko Sentral ng Pilipinas) has already hinted a likely pause in their next meeting and this created a slowdown in major aggressive trends after a decent year-to-date run,” Mr. Reyes said via text on Saturday.

For Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort, the rates of the T-bills “could be steady to slightly lower” while the 35-day papers could range within 1.9-2%.

The BTr raised P28 billion in T-bills last week as rates continued to decline across-the-board, also borrowing another P10 billion in one-year papers via the tap facility.

Broken down, it accepted P7 billion in three-month papers out of total bids worth P21.75 billion at an average rate of 2.038%, down from 2.046% previously.

The government borrowed another P7 billion via the six-month papers at a lower average rate of 2.099%.

For the one-year securities, it also increased the awarded volume to P14 billion from the P10-billion plan as bids hit P55 billion, pulling down rates to 2.378%.

Meanwhile, the last time the Treasury offered the 35-day papers was on June 2, raising P15 billion as planned out of total tenders worth P34.4 billion. The T-bills yielded an average rate of 2.065%, up by 4.1 basis points (bps) from the 2.024% seen on May 19.

At the secondary market, the 35-, 91-, 182- and 364-day instruments were quoted at 1.925%, 2.033%, 2.126% and 2.412% on Friday, respectively, based on the PHP Bloomberg Valuation Service Reference Rates.

Mr. Ricafort noted that headline inflation’s easing to 2.1% in May will “fundamentally limit any further downside” in yields of these short-term government securities.

Last week, BSP Governor Benjamin E. Diokno hinted they will likely keep benchmark interest rates at current levels for the meantime as inflation continues to ease.

The overnight reverse repurchase rate currently stands at 2.75%, while the overnight lending and deposit rates are at 3.25% and 2.25%, respectively.

The BSP Monetary Board will have its next rate-setting meeting on June 25.

“Other leads/catalysts for include any further relaxation of lockdowns locally, trend in local COVID-19 new cases as the local economy further re-opens, trend in global oil prices (recently among 3-month highs), some pick up in US economic data from the worst levels during the lockdowns such as retail sales (June 16), industrial production (June 16), housing starts (June 17),” Mr. Ricafort said.

A decision on whether the lockdown in Metro Manila will be further eased or tightened anew is expected to be announced this week.

Meanwhile, Security Bank’s Mr. Reyes said market participants are also waiting for the decision of the government on what stimulus package will be adopted and how these will be funded.

“We need further clarity on how the government intends to fund stimulus programs recently passed by Congress to determine new major directional moves,” he said.

Several stimulus bills are currently pending at Congress, two of which are the P1.3-trillion ARISE (Accelerated Recovery and Investments Stimulus for the Economy) which was passed by the House of Representatives early this month and the proposed P140-billion Bayanihan II law pending at the Senate.

The government plans to borrow P170 billion from the local market in June: P110 billion via weekly T-bill auctions and the remaining P60 billion in Treasury bonds to be offered fortnightly. — Beatrice M. Laforga

Kwik.insure to roll out online insurance mart

INSURANCE technology (insurtech) firm Kwik.insure wants to tap more Filipinos via its electronic commerce (e-commerce) platform for insurance products.

“The country’s insurance penetration is at a very low rate of 1.67%… We aim to help hundreds of thousands in the near future, and drastically improve the insurance penetration rate alongside our valued partners,” Hamilton Angluben, Kwik.insure founder, said in an e-mail on Saturday.

The insurtech startup is set to launch its digital platform by the fourth quarter to let Filipinos avail of insurance products from different firms in an online insurance marketplace.

Mr. Angluben said they are in discussions with more than 20 insurance companies for partnership, including Sun Life of Canada (Philippines), Inc. for the life insurance sector and Standard Insurance Co., Inc. for the nonlife sector.

“Insurance companies looking for a means to offer their entry-level products in one platform completely online, are welcome to partner with us. There are about 100 insurance companies in the Philippines and above 30 HMO (health maintenance organization) providers, and we would love to have discussions with the rest of the industry,” Mr. Angluben said.

The startup firm’s plans to include health, life, travel, mobile and automotive insurance products in the initial list, with all transactions online, “paperless,” and “done within minutes.”

The insurtech company wants to reach countries in Southeast Asia and decided to first launch in the Philippines.

“A seed round is being raised for Q4 of this year to fast-track growth. The team is thrilled with the support received, which includes venture capitalists from the region,” Mr. Angluben said.

In more advanced economies in the Association of Southeast Asian Nations, he said online insurance marketplaces have helped boost the industry and have become “a reliable and legitimate partner” for consumers and firms.

“Being compliant is a priority for us as we’re in a trust-based and regulated industry. We are in discussions with the Philippine Insurance Commission and they are trying to learn more about our business model to ensure proper regulation,” he added.

He said the Philippine insurance industry will have to expand by around 1,100% to be at par with the global average in terms of density or the ratio of premiums to the total population, and by 300% in terms of penetration rate or total premiums relative to the economy. — B.M. Laforga

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