Isuzu Philippines Corp. will fully comply with the Department of Environment and Natural Resources’s (DENR) imposition of Euro 4 vehicles by 2018, notwithstanding an estimated cost increase of 10 percent to 15 percent that goes with the move.
Arthur Balmadrid, senior vice president for Sales, told reporters on Wednesday evening that the Japanese car brand is “on schedule” to meet the 2018 original Euro 4 deadline imposed by DENR.
In a Department Order issued in 2010, the DENR set a deadline of January 2016 for all vehicles to be Euro 4 compliant, from the prevailing Euro 2.
But an existing agreement with car companies allow them to sell existing models with Euro 2 engines until end of 2017, but must have transitioned to Euro 4 by 2018.
The Euro 4 standard is a globally accepted European emission standard for vehicles, which requires fuel to have significantly low amounts of sulfur and benzene.
According to Euro 4 standards, the emission of sulfur content both for diesel and gasoline should measure only 50 parts per million (ppm), instead of the 500 ppm for Euro 2.
Balmadrid said that, for Isuzu, any engine change will mean a cost increase of 10 percent to 15 percent. Other automakers are seen incurring a similar cost increase in replacing the engines of existing models.
Even with the cost increase, Isuzu remains optimistic the impact on sales will be minimal.
“There will be a temporary impact [on sales], but we’re not changing targets. We still expect to grow with the industry. If the industry grows 10 percent, we aim to grow at least 10 percent to keep our market share,” Balmadrid said.