RP hopes to become Asean hub for auto parts, CBUs

The country plans to export $2.75-billion worth of auto parts and expand production and sales of completely-built-up units (CBUs) to between 200,000 to 250,000 units in three years time under a draft automotive parts roadmap.

Trade and Industry Secretary Cesar V. Purisima said the country hopes to become an ASEAN manufacturing hub for auto parts and CBUs.

"The market prospects for Asia’s motor vehicles are positive and we expect to double our 2003 export of auto parts of $1.35 billion to $2.7 million by 2007," Purisima said.

He added, "we hope to capture a big portion of Asia’s motor vehicle market by strengthening the supplier base of our automotive industry."

The automotive parts roadmap is being crafted by automotive industry players and the government.

At present, there are 256 autoparts in the country whose production is currently limited to auto wiring harness, auto transmission and alloy wheels.

The Philippines’ 256 autoparts makers, however, Purisima pointed out, is meager when compared to Thailand’s 1,700 firms and even Malaysia’s 350 autopart manufacturers.

"It is important that the country’s autoparts manufacturing capability/expertise, product coverage and participants be improved and increased "if we aim to be a major player in the ASEAN auto industry," Purisima said.

The roadmap being drawn up will cover four major concerns. These are strengthening the auto policy environment, implementing productivity and competitive program, addressing industry value chain gaps and establishing an auto technology excellence center.

To strengthen the auto policy environment, the auto industry proposes better export program be given to autoparts manufacturers and that government put a stop to imports of used vehicles.

The industry also aims to increase productivity by pursuing shop floor level core competency program, undertaking academe-industry linkage and at the same time improving industrial relations between labor and management.

The roadmap will also address the promotion of industry clustering so that firms can collaborate to increase product value-added and attain economies of scale.