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No Honda or Mitsubishi Taxi Cabs in the Philippines

We all know that a lot of taxis use the Toyota brand, and from time to time some Nissan, Hyundai and Kia. But in my experience, I have yet to see taxis using the Honda or Mitsubishi or Mazda brand in the Philippines.

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It is interesting to see how giant car manufacturers take different approaches regarding entering or staying out of the taxicab market in the Philippines. For this post, I’ll just consider the metered taxi cabs, and not the shuttles and vans registered under UV Express Services or GT Express (and the colorum ones).

Taxi by Leonid Mamchenkov, on Flickr
We all know that a lot of taxis use the Toyota brand, and from time to time some Nissan, Hyundai and Kia. But in my experience, I have yet to see taxis using the Honda or Mitsubishi or Mazda brand in the Philippines. Do you also wonder why?



Toyota taxis are probably the most common to see plying our highways. From the old timer Corolla, Corona, to Vios, they even have Avanza. No Altis though or Camry or Innova as I think Toyota still sells these for private consumption. Hyundai Accent and Kia Pride or Rio taxis are also seen from time to time. We also have the classic Nissan Sentras.

On the other side, I haven’t ridden or seen any taxi cab that is a Honda City, Civic, Jazz or a Mitsubishi Lancer or Adventure. No Mazda 3s either (though I’d love to). So I take it to mean that these car manufacturers choose not to enter the taxi business lines.

As far as I know, the way it works is that taxi companies and operators enter into deals with the car dealers to buy bulk of their cars, to be transformed into their taxi fleets. So the presence of the car brand as taxi cabs (or the lack of it) is surely indicative of the car brands’ management decision. And likely included as a deliberate company strategy.

So why do other brands dominate the taxi cab business while others seemingly choose to stay out of it? I ask because to a mere observer like me, it is a big market that generates bulk sales, and as a company, I definitely want to have more sales. Based from 2009 revenues in the Top 25k Corporations in the Philippines (from CIBI), Toyota Motors Philippines is ranked top 20th in terms of revenue. Honda Motors is at 57th, Mitsubishi 44th, Nissan 603rd, Hyundai dealers 1000th++.

So given that brands who do not engage in the taxi business still generate healthy sales revenues, they surely have other sources where they get the sales from, to compensate their lack of presence in the taxi cab businesses. What are the other possible considerations anyway?

Again, as a consumer and observer who rides taxis every now and then, the first hand experience in riding the car gives me the impression of whether the car brand and design is durable, for heavy duty, affordable, spacious, sleek, beautiful inside, etc (though of course in my assessment I remove the add-ons done by the taxi company already). These things I get to see and experience, and I even get the opinions of the cab drivers, and in turn these will eventually help me decide what car brand to choose when I buy my own car. So this is a clear advantage for car brands with presence in the taxi business.

From my opinion, branding is also a crucial factor. Maybe, note just maybe, some car companies do not like their products to be branded as taxi-type cars. There is nothing wrong with it especially if taxis stand for durability, affordability, etc but this should be nonetheless be tied to the car manufacturer’s target market and overall branding strategy. If their target market is the middle class then perhaps there’s nothing wrong in allowing some products or so to be used as taxi fleets as well. But if the intention is to keep the image that their cars are for private use only (there are of course consumers who don’t want to buy car designs that are commonly used as cabs), then staying out of the taxi business line will prove to be a good move.

How about a hybrid of both, as Toyota, Hyundai, Nissan and Kia do it? Allot just a select line of car designs for both public and private use (likely the lower end ones) then keep the more high-end designs solely for private purchase.

As in life and applicable to business, to each his own. Whatever works. After all, not all competing companies are joining the bandwagon, unlike what we’ve seen in other industries where what others do will soon be imitated by the competition. Here in this post, it is clear that that is not always the case.

PS. I’m all for the durability and affordability, and if there’s flexibility that the car I want is not used for taxi cabs, I’ll definitely take it. But if none, same design but different color, plus some add-ons, will be fine as well.



PSS. I think in other countries there are Honda Taxi cabs. So I guess country / locations also matters.





Photo: “Taxi” by  Leonid Mamchenkov 

This work is licensed under a Creative Commons Attribution 3.0 Unported License.

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About Geri (359 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

2 Comments on No Honda or Mitsubishi Taxi Cabs in the Philippines

  1. Definitely price is one of the considerations why we don't see certain brands used as taxi cabs. I don't own any Honda unit but I've read in some forum that they indeed explicitly prohibit it. Anyway…

    It's good that other brands aside from Toyota now offer taxi-friendly vehicles such as Hyundai and Kia (who happen to be sister companies here in the Philippines). Being Korean brands and relatively new entrants in the market compared to Japanese brands, they still have some catching up to do. But quality and price-wise, I think they're doing pretty good. Should be good for taxi operators also to have more options.

    Oh, how about Mitsubishi Mirage G4?

    To each his own I guess. Some owners really don't like their vehicles as pang-taxi (even if they bought the higher variant or different color). While some don't mind at all.

    As for me, in getting a car, get what you want in terms of exterior and interior features. Regardless what other people think or say. In the end it's your car.

    Keep on reading!

    Like

  2. For Honda specifically, I think it's marketed as something stylish and “hindi ginagawang taxi” (a sentiment shared by some people I know; as well as one person who advised a relative when he was choosing his next car).

    But for I think it comes down to cost. Kia and Hyundai are the more affordable brands. Honda is more expensive compared to their toyota counterpat/equivalent car. I believe the same is true for Mazda.

    I think the reason lies more with the taxi operator. Even if honda and toyota were both willing to give 10% discounts for a bulk purchase of 10 cars. The rather large margin between a honda city (more expensive than the middle class vios type e) and the vios type j (the cheapest one) is just too big.

    ROI is quicker and capital cost is less with the toyotas and kias.

    Of course it may really be that Honda doesn't want to be seen as “pang taxi”. But with their price tag, i doubt they're having a hard time swatting away offers.

    Like

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