DTI still not prepared to issue auto roadmap

The issuance of the much awaited roadmap for the automotive manufacturing sector will be delayed anew as the Department of Trade and Industry has failed to secure the approval of the Cabinet.

In a text message, Trade Secretary Gregory L. Domingo confirmed the expected delay as the board of the National Economic and Development Authority (Neda) has sought for more information on the incentives given to the automotive sectors in the region.

The automotive roadmap, which will outline the targets, direction and policies of the industry, is much anticipated by the local car firms, which are all expected to make their respective investment decisions depending on this document.

Domingo earlier said that the DTI was looking at revisions in the excise tax structure and additional incentives for higher local content in the automotive manufacturing sector to become part of the automotive roadmap, which was geared toward making the Philippines the automotive hub of the region.

Local automotive firms may also be allowed to meet the minimum vehicle production requirement in phases in order to get these incentives.

Based on initial studies, the feasible minimum volume would be to produce 40,000 units per model per year.

Local automotive firms, however, have already sounded off concerns, as this volume may be too big considering that the domestic demand is projected to reach only 210,000 units this year.