Sojitz G Auto Philippines (SGAP), the official distributor of Geely in the country, has announced that it will be making adjustments to its prices.
This comes after the Bureau of Customs (BoC) issued a Customs Memorandum Order (CMO) on the Department of Trade and Industry's (DTI) directive to add the safeguard tariff on imported vehicles. With it, SGAP says that the prices of the Coolray, Azkarra, and the Okavango will increase. However, the price hike will not take effect immediately.
“The new safeguard tariff will eventually raise prices of Geely vehicles for new shipments which will arrive this month,” said Mikihisa Takayama, president, and CEO of SGAP.
This means that customers that wish to purchase a brand new Geely can still buy with the current prices until supplies last.
Takayama says it is unfortunate that the DTI had to issue such a policy at a time when the auto industry is expected to recover from the huge drop in sales last year due to the pandemic. Still, Takayama added that SGAP is optimistic that auto sales for 2021 will be able to bounce back. More importantly, the company is also hoping that the market can adjust to the higher prices the policy will bring.
The DTI's move to slap additional safeguard duties on most of the imported vehicles in response to the petition submitted by the Philippine Metalworkers' Alliance (PMA) that sought to protect local vehicle assembly. Under Republic Act 8800, or the Safeguard Measures Act, a cash bond amounting to PHP 70,000 per unit for passenger cars/vehicles under AHTN Code 8703 and PHP 110,000 per unit for LCVs under AHTN Codes 8704.21.19 and 8704.21.29 will be imposed.
Geely hasn't mentioned how much the price increases will be, but our EIC spoke to Froilan Dytianquin, SGAP's General Manager for Sales & Marketing, to get a clearer picture as to what the new SRPs may be.
"Regarding price increase, we have not fixed it yet. However since the CMO has been released and it specified that this additional safeguard tariff or bond will not have any influence on the VAT and Excise Tax, it will just be treated as an additional cost which can be added to the SRP," said Dytianquin.
Based on the statement of SGAP's GM for Sales & Marketing, we can extrapolate what the pricing structure may look like. All Geely models are imported under AHTN Code 8703 (or passenger vehicles) which means all will be subjected to the PHP 70,000 safeguard bond, not the PHP 110,000 safeguard bond for LCVs.
While Dytianquin says pricing isn't final, this is what the new pricelist may look like:
Coolray 1.5T Comfort: PHP 978,000 > PHP 1,048,000
Coolray 1.5T Premium: PHP 1,088,000 > PHP 1,158,000
Coolray 1.5T Sport: PHP 1,198,000 > PHP 1,268,000
Azkarra 1.5T Premium: PHP 1,438,000 > PHP 1,508,000
Azkarra 1.5T Luxury: PHP 1,598,000 > PHP 1,668,000
Okavango 1.5T Comfort: PHP 1,208,000 > PHP 1,278,000
Okavango 1.5T Urban: PHP 1,328,000 > PHP 1,398,000
These prices are just estimates for now, but it gives customers an idea what to expect. As mentioned earlier, the price increase will only take effect once their existing stocks of units (imported under pre-safeguard conditions) have been sold to customers. So if you're in the market for a Geely, better decide now whether to get one.