MANILA, Philippines - Isuzu Autoparts Manufacturing Corp. (IAMC) is set to ship more auto parts this year amid higher demand for vehicles in Southeast Asia, an official said.
“We are expanding to increase exports of transmission to 300,000 units this year,”Arthur Balmadrid, senior vice president for corporate business division of Isuzu Philippines Corp. (IPC) said in an interview.
He said IAMC shipped 200,000 transmission units to Isuzu plants overseas in 2010.
Last year’s exports were down slightly from 2010.
“Higher exports will be supported by higher demand worldwide. Majority will come from ASEAN (Association of Southeast Asian Nations),” Balmadrid said.
The IAMC plant in Binan, Laguna manufactures and distributes transmission to IPC and other Isuzu factories, with an annual production capacity of 248,000 units.
To achieve higher exports, Balmadrid said Isuzu has made an investment to expand the IAMC plant.
He declined to give the amount of investment made however.
If the government would extend more support to local auto parts makers, he said the industry would be able to grow which would likewise benefit local car manufacturers.
Earlier, IPC warned it may consider scaling down its assembly operations next year if incentives in the form of reduced taxes are not given to car manufacturers.
Balmadrid said the local manufacture of cars is costlier compared to importing vehicles as auto makers in other countries like Thailand are given incentives.
He said that without incentives, IPC which plans to launch the new D-Max pick up next year, may just have to import the vehicles instead of manufacturing the units here.
All of IPC’s products are assembled in the country except for the Alterra sports utility vehicle.
IPC produces 10,000 to 12,000 units per year.
It is aiming to sell 13,000 vehicles this year, up 20 percent from a year ago.