Inch by inch, taking the short road to dominance
Last July 11, Changan Auto’s flagship showroom and dealership along C5 in Pasig City was formally opened to the motoring public. The Changan Auto Pasig dealership, at 4,373 sqm, makes it the largest Changan dealership in the country. But what’s more striking is what’s behind the dealership.
Changan Auto Pasig is just part of the sprawling 11,222-sqm Inchcape Philippines Distribution Complex, which also includes Inchcape’s parts distribution center, body and paint workshop, and training academy with dormitory facilities.
Mind you, the distribution-cum-aftersales service-cum-training complex doesn’t just serve Changan Auto’s needs. As Inchcape is a multi-brand distributor that also handles the Mercedes-Benz, Chrysler, Dodge, Jeep and Ram, Jaguar, and Land Rover brands, its 1,338-sqm parts distribution center stores up to six months’ worth of parts inventories for all its brands. It also operates dealerships for Mazda and Harley Davidson motorcycles.
Of all these prestigious brands that Inchcape carries, it’s the China-based Changan brand that it opts to put front and center in this strategic location. If you see the jaw-dropping automotive numbers that the world’s (disputed) number one economy has been putting out, then you’ll also be in agreement with Inchcape’s choice.
In 2023, Chinese carmakers rolled out 30.16 million vehicles, and wholesale deliveries–which includes shipments to dealers—rose to 30 million (per China Association of Automobile Manufactures data). According to a Bloomberg report, both surpassed previous records set in 2017. Exports surged 58 percent to 4.91 million units.
China’s expansive road network can accommodate all these new cars. In the book “The China Dream,” author Jonathan A. Krane wrote that in 2022 China had over 100,000 miles (160,000 kms) of expressways and 260,000 miles (416,000 kms) of highways. According to China’s National Bureau of Statistics, the country has, in total, about 4.77 million kms of roads, placing it third in the world behind the United States (6.65 million) and India (5.6 million).
Compare that to the Philippines’ 34,352 total kms of national roads and 173,977 km of local roads, for a total road length of 208,329 km (per data from Congressional Policy and Budget Research Department of the House of Representatives). For China, our road networks are like a “short trip to the suburbs.”
During the inauguration activities, Alex Hammett, Inchcape managing director for South Asia & Pacific, told this author that there’s well over 30 brands now coming into the country from China, and that’s because the Philippines is quite an easy market to target.
“We represent Changan in five different countries, which includes the Philippines. We are extremely confident of the brand, not only with the quality, the factories, some of the joint ventures they have (with Mazda and Ford), but also the product lineup that Changan will put in the Philippines,” Hammett said.
‘Small but growing’
Hammett observed that “the market here in the Philippines is unique,” citing that six of the top 10 players are still Japan-based. “The Chinese market (in the Philippines) now is too small, but it’s growing,” he added.
He said that Inchcape and Changan “have some pretty ambitious goals and that’s why we’re setting up our dealership network so strong.”
Francis Jonathan C. Ang, Inchcape Philippines chief operating officer, said. “We believe that our commitment to excellence is beyond delivering quality vehicles. It involves providing a seamless car shopping experience and exceptional after-sales service to our valued customers.”
To ensure that the service teams are empowered and well-supported, the Inchcape complex also houses the training academy equipped with two large training rooms. Dormitory facilities within the complex are also made available for the safety and convenience of the service teams based outside Metro Manila.
Auto industry veteran Maricar Parco, now Changan Auto’s general manager, told the media: “The opening of our flagship showroom and service center in Pasig not only represents a significant milestone for the brand, it underscores our dedication to providing great customer experiences and reinforces our commitment to the Philippine market.”
In the first half of the year, Changan Auto held its inaugural dealer forum and introduced the new sub-compact SUV, the Changan CS15.
Changan Auto has over 160 years of experience in the automotive industry. It is recognized by the China Passenger Car Association (CPCA) as one of the country’s top five best-selling brands. It has been named the number one Chinese brand by J.D. Power and ranked among the top global carmakers in recent years. Changan Auto in the Philippines is backed by Changan International Corp. Its current dealership network in 22 locations will expand to 29 by the end of 2024.
Inchcape Philippines has 38 multi-brand dealerships in the country. Inchcape is a global automotive distributor with operations in more than 40 markets around the world.
