High vehicle ownership keeps Shell optimistic

CEBU, Philippines — The growing motorcycle ownership in the country, specifically in Cebu, prompted Pilipinas Shell’s Petroleum Corp. lubricant unit to strengthen its foothold in the Cebu market.

Executives of Shell’s lubricant unit, led by Lorrie Ramirez, brand manager of Shell Advance and Recca Menchavez, brand manager of Shell Rimula, were in Cebu to boost its presence here at the same time introduced its celebrity endorser Coco Martin.

Ramirez said the company expects a surge in sales for motorcycle oils as the two-wheeler population in the country continues to grow.

Roughly, year-on-year motorcycle ownership grows by 12% to 15% and motorcycle owners are constantly changing oil for their units.

She noted that there are owners who change motorcycle oil for every two to six months, depending on the brand and the frequency of the usage.

The scooter segment for instance is showing a promising trend and is now considered as the fastest growing category in the motorcycle overall sales.

Meanwhile, the booming construction sector also reinforced the demand for lubricant oils, as more trucks are used during construction of the projects.

Menchavez added that the construction boom, which entails acquisition of additional equipment, translates to more product usage, particularly for heavy engine oils.

The Motorcycle Development Program Participants Association (MDPPA), formed by Honda, Yamaha, Suzuki, Kawasaki and KYMCO, recorded a year-on-year sales growth of 16 percent in 2017, which translated to combined sales of 1,319,084 units. (FREEMAN)