One look at the landscape changes that have happened to our roads makes it clear that Chinese cars are here to stay, regardless of how many Filipinos try to resist.

They’re affordable, powerful, well-equipped, and in many cases, quite stylish. But have you ever noticed how many seem so similar under the skin?

Eagle-eyed buyers will note that many cars sourced from China have engines that rarely exceed 1500cc, whether in turbocharged or naturally aspirated guise.

That’s not for convenience’s sake but for cost - precisely, to cut them.

What's with the 1.5-liter displacement?

A free trade agreement between ASEAN countries and the People’s Republic of China partially lifted some import duties on Chinese-made goods that satisfied certain conditions, including their cars.

Through Executive Orders 71 and 72, the late President Benigno S. Aquino III reduced import duties on vehicles from the PRC from 20% to just 5% on vehicles that met the criteria AHTN 8703.21 (Motor vehicles with engine displacement 1000cc and below) and AHTN 8703.22 (motor vehicles with engine displacement exceeding 1000cc but not exceeding 1500cc).

This meant that from 2018, when the Executive Orders came into play, many distributors in the Philippines could find huge savings by importing their vehicles from China instead of other countries.

First out of the gate was Ford with the Ecosport. Sourced initially from Thailand with a 0% import duty, the Ecosport was equipped with a 1.5 liter naturally aspirated inline-4. Despite being free of duties, Ford Philippines decided to incur a 5% import duty on Chinese-made Ecosports with the 998cc Ecoboost engines, possibly due to a lower manufacturing cost than Thai-made units.

After the discontinuation, Ford Philippines continued to import their compact SUV from China, only instead of the Ecosport, it became the ever-popular Territory.

Established distributor networks also started favoring Chinese brands over those they were carrying. Automotive distributors such as The Covenant Car Company Inc. jumped on the bandwagon in a big way by shifting focus away from their Chevrolet products to importing MG cars that met the criteria. The incentive was so attractive that MG has a lineup exclusively powered by 1.5-liter engines.

The Executive Orders were also very beneficial to Chinese automakers which wanted to set up shop here. Geely offered an exclusively 1.5-liter equipped lineup, starting with the Coolray and ending with the newest offering, the Emgrand.

Despite the small displacement, however, Geely’s SUVs are capable of very good performance thanks to turbocharging, their 7-speed DCTs, and the Mild Hybrid systems found in the Okavango and Azkarra, which bump power and efficiency up slightly.

Also Read: EXCLUSIVE: The story behind the 15-second Geely Coolray drag racer

Other companies took advantage of the tax incentive by having a majority of their lineup be powered exclusively by engines with displacements 1500cc and below. Maxus, for example, has 50% of their lineup in this segment - the 1.3 Turbo and 1.5-liter G50 MPV and the 1.5 Turbo D60 SUV. 

Volkswagen also got in on the action when it revamped its lineup in 2018 and introduced a range of SAIC-VW-produced models. A 1.4-liter or 1.5-liter MPI engine powered the Santana and Santana GTS, while the Volkswagen Lavida was powered by a 1.4-liter TSI engine. The only exceptions were the Tiguan 280TSI and the Lamando, powered by a 2.0-liter TSI engine, disqualifying them from the tax incentive, and the Volkswagen Transporter Combi, which isn't sourced from China.

Here to stay?

However, market acceptance of Chinese-branded vehicles still needs to improve, with industry standouts like the Geely Coolray and Okavango being outliers instead of the norm. However, the landscape has certainly changed since 2018, and it isn’t showing signs of slowing down. 

On the contrary, car brands from China are launching left and right thanks to the growing demand for affordable luxury. Aside from the Chinese brands mentioned above, Chery, Changan, Jetour, and GAC are also gaining mainstream footing. And they all have a 1.5-liter mill in their lineup, one way or another.  And with increasing technology, these 1.5-liter engines are slowly surpassing their larger displacement cousins in performance and efficiency. 

Have you considered one of these cars for your next family vehicle? Did you find this article informative? Let us know by rating it and leaving a comment below.