Philippines as Asian car production hub likely
The Philippines could be a possible hub for mass car production with low-displacement engines in Asia, a Trade Department official said.
"We are studying if local assemblers can produce low-engine displacement cars here, like 1.1 or 1.2. If we can do that, then we can be a hub for manufacturing for such vehicles in the whole of the Asian region," Efren Leaņo, executive director of the Board of Investments, told reporters over the weekend.
He said Filipinos might not patronize the small cars, however. "Filipinos sometimes don't favor low-engine displacement cars. Look what happened to Kia and Chery," he said. Leaņo said the board recently approved the entry of two Chinese automotive companies into the country recently. These are State Motors of China and Jac, which is into bus assembly.
He said the board was considering tax rebates to local car parts makers to strengthen the industry. "As of now, we are thinking of what can be done within the executive powers because it will take time if we go to Congress for a legislation granting additional incentives to parts makers," he said.
Leaņo said granting incentives to parts makers through an executive order from the President would shorten the process. He said the board was also reviewing additional incentives to be given to car assemblers if they would produce vehicles with a 70-percent local content.
"We are looking at all the possibilities here," he said. Meanwhile, the board is restructuring the guidelines of the motor vehicle development program. Leaņo said the general guidelines would be separated from the specific rules to avoid confusion. He said the board was optimistic it could finish the guidelines before the end of this month.