A new industrial policy for the Philippine automotive manufacturing sector is expected to significantly boost local vehicle production in two years, the Philippine Institute for Development Studies (PIDS) said.
Citing estimates from the Philippine Automotive Competitiveness Council Inc. (PACCI), a PIDS discussion paper read the local sector has “the potential to make 273,000 units by 2017 (of which 225,000 will be for domestic market and 48,000 for exports market) and 506,000 units by 2022 (of which 350,000 for domestic and 156,000 for exports market).”
As of end 2014, the Philippines produced only 88,845 motor vehicles and 729,480 motorcycles, data from the Asean Automotive Federation showed. If the estimated vehicle production will materialize, this will reflect a more than 200 percent surge in local assembly operations.
The government recently issued Executive Order No. 182 that provides for the implementation of the Comprehensive Automotive Resurgence Strategy (CARS) Program, which dangles some P27 billion worth of incentives for its participants.
Apart from enabling the country to resume vehicle exports, the new industrial policy is also expected to increase the market share of completely knocked-down (CKDs) units, or those assembled here. It is also seen to generate P41 billion in additional investments, P150.5 billion worth of additional output, P11.1 billion worth of additional household income, as well as 70,000 new jobs. Amy R. Remo