MANILA, June 2 (PNA) — The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has welcomed Executive Order No. 182 which implements the Comprehensive Automotive Resurgence Strategy (CARS) Program signed by President Benigno S. Aquino III.
CAMPI President Atty. Rommel Gutierrez said in a text message Tuesday that the industry supports the new program of the government to revitalize the local automotive sector.
“In the same token, CAMPI acknowledges the efforts of the government in ensuring a resurgent automotive industry that will boost vehicle and parts manufacturing capability in the country,” Gutierrez said.
“This program is timely in view of the Philippine motor vehicle industry to achieve competitiveness in the region, giving opportunity to the country’s automotive industry to take part in the regional supply chain,” he added.
Data from the ASEAN Automotive Federation showed that the Philippines’ production volume of motor vehicles in 2014 was the lowest among its Southeast Asian peers including Indonesia, Malaysia, Thailand, and Vietnam.
Total motor vehicle production of the country at end-2014 was at 88,845 units, although this grew by 12 percent from 2013’s figure of 79,169 units.
“The program is designed to build and grow the parts making capability of the auto industry. For without a robust parts making industry, our car making industry will remain uncompetitive. The CARS program is about building capabilities and jobs to make our automotive manufacturing industry competitive in ASEAN,” said Department of Trade and Industry (DTI) Secretary Gregory L. Domingo.
The CARS Program is expected to attract over Php27 billion worth of investments for the manufacturing of new vehicle parts which will boost local production capacity to at least 600,000 units over a six-year period.
This will translate to economic activity worth Php300 billion in six years resulting to gross domestic product (GDP) share at about 1.7 percent.
The new incentives regime for the local automotive manufacturing sector is projected to create some 200,000 direct and indirect jobs.
“CAMPI is confident that this program will be a catalyst for sustained growth of the industry, particularly the manufacturing sector,” Gutierrez noted. (PNA)