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Business

Competitors question registration of CRV as AUV

- Marianne V. Go -
Competitors of Honda Cars Philippines Inc. (HCPI) are questioning the legitimacy of the Asian utility vehicle (AUV) status registration of Honda’s newly-launched and repositioned CRV even as HCPI has met all the requirements under the category I of Commercial Vehicle Development Program.

Competitors of Honda pointed out that because of its new AUV status, the new CRV is exempt from paying the regular excise tax imposed on other similar compact sports utility vehicles in the market.

The old CRV was classified as an SUV with a price range of P1.4 million.

In a statement faxed to the STAR, Honda said the "new CRV registration under category I of Commercial Vehicle Development Program has been accepted by the Board of Investments (BOI) after Honda was able to meet all government requirements such as high local content and local manufacture of engine transmission, among others."

From April 26 to 30 this year, Honda has already been able to sell 420 units and currently has a five-week waiting period. There are already at least 2,000 buyers on Honda’s waitlist for the new CRV.

As an AUV, Honda has also been able to drop the price on its new CRV to P899,000 for the manual transmission and P959,000 for the automatic transmission.

Competitors of Honda said that they welcome new model introduction because they stimulate market growth.

However, they expressed concern that SUVs registering as AUVs "contradict the basic concept of the AUV program, which is to provide an affordable vehicle for business and multi-purpose use."

They pointed out that the new CRV has passed itself as an AUV by reconfiguring its original five-seat capacity to an awkward 10-seater and downgrading its interior features and materials used.

Honda, however, claimed that the new CRV seat configuration meets the required measurements specified under RA 4136 for the drivers and all passengers. This has been confirmed, according to Honda, by the Bureau of Internal Revenue (BIR) and the Tariff Commission.

Honda also said "contrary to common belief, 10 seats are not required to become an AUV. Moreover, there are AUV models other than Tamaraw, Highlander and Adventure."

It added "for the past many years, majority of the SUVs in the market are fitted with extra jump seats to meet the 10-seat rule of the BIR by adding seats in the cargo area. Moreover, 4x2 drive trains are installed by them to avoid the mandatory excise tax on all 4WD vehicles."

AUV BOARD OF INVESTMENTS BUREAU OF INTERNAL REVENUE COMPETITORS OF HONDA COMPETITORS OF HONDA CARS PHILIPPINES INC CRV FROM APRIL HONDA I OF COMMERCIAL VEHICLE DEVELOPMENT PROGRAM NEW
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