Auto sector road map ready by Q1 next year

MANILA, Philippines - The government may release the road map for the automotive industry in the first quarter of next year.

Trade Secretary Gregory Domingo told reporters yesterday the government may roll out the road map in the first quarter of next year.

He said the release of the road map has been delayed as the National Economic and Development Authority Board requested for more information on the incentives being offered by other Southeast Asian countries to vehicle assemblers.

“We have an improving chance of competing with our neighbors in the sector as we have been attracting firms engaged in the auto supply chain,” he said.

He cited a Taiwanese firm that recently set-up a facility for plastic molded parts here.

A Japanese firm engaged in the manufacture of plastic molded parts for the automotive industry has likewise expressed interest to put up a factory here.

“We just need to attract firms engaged in steel stamping,” Domingo said.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said the other day that while it understands the government’s need for more time to come up with a road map, the plan needs to be released soon for companies to be able to decide on future investments here and prepare for the Association of Southeast Asian Nations (ASEAN) Economic Community.

“Major decisions are expected to be made and roll out of the road map by the first quarter of next year will be very crucial,” CAMPI president Rommel Gutierrez said.

Under the proposed road map, the DTI wants to provide incentives to automotive firms which meet the minimum volume of production of 40,000 units per model per year to make companies competitive by exporting to other countries.

 

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