Auto parts manufacturers to build Pinoy utility vehicle

The 130 members of the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) are going ahead and building a prototype of the Philippine Utility Vehicle (PhUV).

The MVPMAP expects to complete the PhUV prototype by the first quarter of 2007.

The PhUV is an Asian utility vehicle (AUV) type which the MVPMAP has been lobbying for to replace the abandoned people’s car program of the government.

The PhUV would be a totally new AUV built from completely knocked down (CKD) kits at the price of a used car, but with a high level of value-added local parts.

The target market of the PhUV would be buyers of used vehicles or those who cannot afford to buy brand new vehicles.

The tentative price for a PhUV unit is P350,000. The MVPMAP hopes to sell around 30,000 units during the first year.

The MVPMAP board has approved the product concept and the preliminary designs of the PhUV. The prototype PhUV will have a diesel engine. It is intended for commercial use as a passenger vehicle or for cargoes.

The PhUV would be ideal for business use on weekdays and for family use on weekends.

In a bid to prove that a lot of value-added parts can be produced locally and that an AUV can be manufactured at the target price, MVPMAP members will contribute whatever local parts they produce to complete the prototype unit. This will result in a high level of value-added local content for the PhUV.

"I am very elated with the response and enthusiasm that the members have shown. I guess this is their way of showing their concern for the local parts industry that is threatened by a declining volume of vehicles produced from CKD kits in an auto industry with sales that have not grown for the last few years", said MVPMAP president Eddie Jose.

Only vehicles produced from CKD packs have value-added local parts in them.

Those built from completely-built units (CBU) have no local parts at all.

MVPMAP is, therefore, looking for ways by which to help spur the sales of vehicles produced out of CKD kits so as to aid the over 28,000 workers dependent on them.

The MVPMAP expects to help the local auto industry break the 100,000-unit annual sales barrier in 2007, something not expected to be accomplished this year.