MANILA, Philippines - The Department of Trade and Industry (DTI) is finalizing the road map that will contain the strategies and support for a competitive automotive industry.
“We are finalizing the policy and support we will give to ensure resurgence and competitive automotive industry,” Trade Undersecretary Adrian Cristobal Jr. told reporters after a recent meeting of the DTI with other government agencies on the road map.
He said the DTI needs to refine the draft executive order for the road map as the government is still making an assessment on the fiscal and non-fiscal support to be given to players.
Cristobal declined to give details saying only that the incentives will be given to those “who have the same level of ambition that the country has, to become a manufacturing hub in the region.”
Earlier, Trade Secretary Gregory Domingo said that under the automotive industry road map in progress, firms will need to meet certain production volume and capital investment requirements to qualify for perks.
Incentives will be granted to automotive firms that will export locally assembled vehicles.
Cristobal said the crafting of the road map is taking time because the department needed to gather inputs from stakeholders.
“It is a matter of putting it together now and what would be the most efficient way to administer this kind of support,” he said.
The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI local car manufacturers need government support and an industry road map to be able to meet the rising car demand here and maximize opportunities in the upcoming economic integration in Southeast Asia.
The CAMPI is pushing for the reduction in cost of manufacturing vehicles here as the cost gap between a locally produced car and an imported one is around $2000.