Showing posts with label Philippines. Show all posts
Showing posts with label Philippines. Show all posts

Monday, December 28, 2009

Eco cars for the philippines - what will be successful

For reference here are 2 related posts


A Prius for the Philippines



Why Philippine Car companies are stupid


If you want to sell an electric or hybrid car or whatever eco friendly car in the Philippines you need to pass some criteria. I'll try to post my ideas from the perspective of a normal Filipino car user/buyer.

Lets look at the what I think the target market would be. I think the target market would be the mid to upper middle class like me. I'm a doctor. Any of the lower classes would not be able to afford  it. Either they use public transportation, motorcycles or at best they use > 10 year old second hand cars or locally assembled owner type jeeps.

Only the rich would dare buy an expensive car like the Prius just for its eco friendlyness because the Philippines is a poor country and we have our priorities. Save money over the environment, even if it just covers the short term.

As a member of the middle class, my goals are a balance between initial price of the car versus the money saved in daily operations. If I were say a taxi company or operating a jeepney, then my priorities would be different. In that case the balance would swing towards lower running costs since these types of vehicles have a hack of a lot more mileage per week than a private car. LNG and small diesel engines are currently used for taxis and jeepneys but there are a few electric jeepneys. But even for taxi and jeepney companies, a very very high initial price is not good because credit isnt easy here and a lot of businesses wont risk so much up front for a possible long term payoff. I'd say for a middle class person, around up to 25% more expensive than a comparable normal car would be the limit.

For a jeepney airconditioning is not needed but for a middle class person arriving at work all smelly and sweaty would not do your social and professional life any good. Also related to this is the looks of the car. It cant be too ugly. An ideal eco car would at least look decent, preferably it would not look any different from a regular car. Unfortunately a SUV variant of the eco car would be needed in the philippines because of the bad roads, the flooding and the extra cargo/passenger space which may be useful. But of course some people would be ok with a small 2 seater so there should be a variety of models available.

Maintenance would be a big issue too. For electric cars, lowering initial price and lowering servicing costs by using cheap lead acid batteries would be viable. Modular battery packs would be nice. You could buy a car then if you had extra cash, go for the li-ion battery pack as an extra. If you have to lose some options to lower the price like computer controlled battery charging, regenerative braking and automatic transmission then do it.

Performance on the road would not be too high a priority. Max speed of 110 kph and tepid acceleration would be acceptable if it would mean lower running costs. Compare this to the prius which has the acceleration of a V6 coupled with a high price. Range would depend on the consumer. For electric and hybrid electric vehicles, different battery packs should be available. I personally would be ok with < 50 km per charge.

Small diesel cars (say the size of a Vios or smaller) would be a hit in the Philippines. Low initial cost, readily available fuel and parts, mileage comparable to some other more expensive alternatives. Who cares about the CO2 and particulate emissions as long as the average Filipino saves money. Ok thats not the right attitude but the average filipino is poor and prioritizes budget over the environment.

Why Philippine Car companies are stupid

Some recent big time mistakes done by Philippine car companies.

WARNING: this is a rant. I do not pretend to be a car expert. This is all my opinion and is based on some personal observations and consultations with a few friends. It also contains sweeping generalizations, mild swearing and mild exaggerations for shock and comedy purposes. So if you have information that can explain some of the stupid decisions car companies have made, or if I made some mistakes, then feel free to comment.

NOTE: by "philippine car companies"  I dont mean companies that were founded by and owned by filipinos, I mean major car companies that sell cars in the philippines.

Lets start with the new Austin mini and the new  VW beetle. These 2 are remakes of cult classics so fans of the original who are now grown up might want to buy them. Unfortunately, that looks like the full extent of the market. These 2 did not sell well. Not sure if they were grey market cars or if an official distributor exists. Anyway these 2 had big disadvantages. Parts and support are always a problem in the philippines unless the car is one of the Big japanese or german brands. Pero the main problem is price performance ratio. These are not large or fast cars and they cost a lot. For almost the same price it would be much better to get a more ordinary looking BMW or Mercedes Benz. Filipinos are practical and wont buy a car just on sentimental value or cuteness.

Next, small diesel cars or lack thereof. AFAIK in Europe Austin mini sized diesel cars exist. AFAIK the smallest brand new diesel car you can buy in the philippines would be a ford escape 2.0 liter. If someone could offer a diesel subcompact sedan (something like a Vios or City) with a ~1.5L diesel with a sub 1 million peso price tag, it would sell like hotcakes. Even better would be a really small diesel car like the Suzuki celerio. Aside from being practical, filipinos are poor. Afaik one reason the honda CRV won over the Rav 4 was its lower price.  1 liter of unleaded gas costs 39.9 something pesos and Diesel costs around 10 pesos less than that. Add to that the generally higher mileage of diesel and you know why diesel cars are cheap to operate. On a related note, why the F*** dont the expedition and other large cars come in diesel format?

Next - Cars need to go on a Diet. The Toyota Corolla and the Honda Civic started out as small cheap sedans available in 1.3 liter versions. They then started to grow bigger and bigger, both in size and engine displacement. Finally they got overpriced out of their market segment and the Toyota Vios and the Honda City had to be invented. As similar thing also happened to the Suzuki vitara - becoming the Grand vitara. The small SUV segment was taken over by the Jimny but it is too small to take over the vitara's place. WTF are those people thinking. Only a few filipinos need more horsepower. Remember that the Philippines is a poor country. Special mention to the Ford Expeditions that are now gathering dust in their owner's garages or are being sold dirt cheap. A SUV or sedan with a > 2 liter gas engine is a stupid buy these days. Gas is expensive. You should at least offer a diesel version.

Next - the Prius. WTF was Toyota thinking? Its expensive, around the same price as a mid end luxury car and almost 5x the price of a vios. Look, Toyota, if I was rich enough to afford a Prius I would be rich enough to NOT CARE about the gas bill. And I would rather buy a BMW or Mercedes since the price is the same. Filipinos dont give much thought to the environment because we're poor. We'll gladly stomp all over the greenies if it meant saving a buck. I predict that most people in the Philippines who buy the prius (if any) are more interested in "appearing" green.


I suggest a cheaper version, a PRIUS LITE if you will, with these specs:

* Smaller body, 2 seater if needed.
* Smaller engine. The Prius has a 1.8 liter engine but accelerates like a V6. Who the heck in the Philippines would want to do that? It wastes gas! Just give me a 1 liter engine that accelerates like a 1.3 liter engine. That would be good enough for me.
* Cut down on the expensive electronics. Just have the dashboard flash a big LOW BATT or FULL BATT sign and have the driver manually switch the gas engine on or off.
* Why be gas at all? Go diesel - electric hybrid
* Modular battery pack. Add more or less cells depending on your budget, sacrificing cargo space. Also have the option of going lead-acid if your budget is really small.
* From the start its a plug in hybrid.
* Typical battery only range would be say 20-50 km, with the aircon on. This is the Philippines. Its hot here. An aircon is a necessity. Anybody that can afford a decent car also has a job or social life that would be affected if they showed up to work sweaty and smelly.
* Manual transmission to lower the price.
* Not more than 1 million pesos in price

Sunday, November 29, 2009

Paypal without a credit card in the Philippines : Part 1







Paypal. The magical service that allows you to shop online. But you have to get a credit card to use it, well thats what I thought.

So lets get a credit card. OK sir just pay XXXX pesos per year as an annual fee after the first year. I'm a cheap person and I believe in old fashined cash so I said no way. I'm only going to use it a few times a year so its not worth it. XXXX usually means around PHP 1000 - 1200 pesos.




Metrobank Mfree has a no annual fee credit card but there are certain ... requirements. No I'm not talking about a symbol tatooed on your head or the blood of your first born. Just ... requirements. Tignan nyo nalang ang link. The requirements cannot be met at the moment. Maybe in the future when my private practice picks up. But til then, I cant do it.

Some people in TPC, specifially this thread, have suggested that I get a CC and at the second year, threaten or beg the agent to waive the annual fee again. Sorry but I dont work that way. I have my dignity and I will not stoop that low. Besides, I wont be a big spender with this and my clout will be low.

To be continued ///

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