Incentives that may include lower excise taxes for locally assembled units are still being discussed at the Trade department in line with the automotive industry road map.

"We would like the government to protect the pickups and the AUV (Asian utility vehicles). If we don't get the incentives next year we will have to import the new model of the D-Max as a completely built-up unit," said Arthur A. Balmadrid, Isuzu Philippines vice-president for the corporate business division, in a briefing with reporters.

Isuzu assembles about 3,000 pickups a year in the Philippines. Another model, the Crosswind, and trucks are also manufactured in the country.

"If we don't get incentives just to let the industry survive, we will need to look for a more competitive model and that will mean fewer products being manufactured here," said Mr. Balmadrid.

A new D-Max model is expected to be launched next year which Isuzu Philippines hopes it will assemble locally.

The incentives are seen to help double the industry output to 300,000 units by 2016 and 534,000 units by 2022. Locally assembled vehicles are costlier by US$ 2,000 against similar units shipped in from Thailand which enjoys zero tariffs.

Completely built-up units are being imported at 30% but are expected to drop to zero by 2016 for cars from Korea and 2018 for those from China due to FTAs of the ASEAN (Association of Southeast Asian Nations) with China and Korea.

Imported vehicles from ASEAN are at zero tariffs. The local car industry is mostly made up of completely built-up units imported from other countries with a 60% share of the market.

Car sales for August of both Association of Vehicle Importers and Distributors (AVID) and the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) fell 1% to 13,209 units in August from 13,336 units in the same period last year.

AVID members saw a 1.8% increase in sales for August to 1,858 units from 1,825 units in the year previous, the group said on September 13th.

CAMPI members, on the other hand, reported on September 12th that its sales fell 1% to 11,351 units in August from 11,511 units due to fewer work days during that month.

One car manufacturer has announced plans to close its vehicle assembly plant in the country.

Ford Philippines announced on June 27th that it will be closing its assembly plant in Sta. Rosa, in Laguna province by December after almost 13 years of operation citing weak domestic demand for cars and a low supply base.