MANILA, Philippines - Isuzu Philippines Corp. (IPC) is pushing for imposition of restrictions on imports of used trucks as well as the grant of incentives to local assemblers to allow them to expand here.
“I think this market is growing so there are a lot of opportunities to expand our brand’s products here,†IPC’s incoming president Nobuo Izumina said during the company’s turnover ceremony yesterday.
The decision to expand Isuzu’s manufacturing operations here however would depend on the incentives to be offered by the government to encourage local assemblers to hike investments here.
Izumina said the company is pushing for restrictions on the import of used trucks in the country so that more local assemblers would be enticed to expand their manufacturing operations here.
“In this market, a lot of used trucks imported from Japan are still running on the streets,†he said.
“If restrictions are in place, it will encourage assemblers here,†he pointed out.
For his part, outgoing IPC president Ryoji Yamazaki told reporters the company is also pushing for the grant of incentives to local car assemblers in the form of lower taxes for vehicles with higher local content to offset the gap between completely-knocked down units and completely built units.
He said that while global car manufacturers want to increase their assembly operations here, the decision to do so is still based on the cost of producing the vehicles here.
Without incentives, he said, producing vehicles here is costlier than importing from other countries.
“The most important thing is cost and the benefit,†he said.
“We are not competitive that is why are pushing the approval of the road map,†he added.
The release of the road map for the automotive industry has been delayed with the Board of Investments citing the need to consult with other government agencies regarding fiscal and non-fiscal measures to be put in place to help spur the growth of the sector.
Yamazaki said the firm is hoping the road map would be released soon and incentives would be granted to local assemblers so that more vehicles would be manufactured here and new jobs would be created.
The bulk or 90 percent of Isuzu vehicles sold here are assembled at IPC’s plant in Laguna, except for the Alterra.
Izumina will officially take over as IPC’s president on May 3.