The Department of Trade and Industry’s (DTI) mandated safeguard bond has made vehicles more expensive. In these trying times, while the automotive sector is trying to recoup 2020s losses, they also need to find ways to make sure that their pricing remains competitive.
Chery PH looks to make things easier, though, and has announced that the brand will not be increasing its prices despite the said mandate. Backpedalling from their previous statement that they’ll apply an increase, they decided instead to shoulder the accompanying bond costs for their vehicle sales.
"We previously announced price increases in compliance with the Department of Trade and Industry's Department Administrative Order (DAO) imposing a provisional safeguard tariff on certain imported cars and light commercial vehicles, but we have decided to absorb the tariff instead of passing it on to the consumer with higher prices," said Rommel Sytin, Chery Auto Philippines President.
With a full crossover vehicle lineup, Chery brings four different models to the market. Their smallest, the Tiggo 2, comes with an economical 1.5L DOHC gasoline engine and comes with either a manual or automatic transmission as standard. While being slightly bigger, the Tiggo 5X is also on offer with the same engine and transmission options. The compact crossover-size Tiggo 7 is markedly larger and instead comes with a turbocharged power plant and a 9-speed CVT. And for those in the market for a 7-seater, Chery PH has the Tiggo 8 that shares the Tiggo 7’s engine and transmission, but at the same time ups the quality and luxury features of the brand.
Right now, this is excellent news for those looking for what can be their first car. But Chery PH added that the holding of current pricing is only until the end of March. The brand has admittedly been on the rise, chalking up pretty good sales despite the economic lockdown - and perhaps that’s a reason why they can take the brunt of the bond costs, albeit temporarily. If they keep up their sales, or better yet, improve their numbers, perhaps they can set a precedence for other car brands. But the question remains: can, and will they be able to keep the profits coming with all the challenges around them?