DTI eyes funding support for Class 1 PUVs

MANILA, Philippines — The Department of Trade and Industry (DTI) is coming up with a program to provide funding support to manufacturers of Class 1 vehicles which are priced below P1 million under the Public Utility Vehicle (PUV) modernization program.

Trade Secretary Ramon Lopez told reporters yesterday the agency, which has submitted the draft executive order for the funding support for Class 2 vehicles under the PUV modernization program, is now working on a similar assistance to be extended to Class 1 vehicles.

In particular, for every Class 1 PUV a manufacturer would churn out, it would get a fixed funding support.

Lopez said the DTI decided to also work on providing funding support for Class 1 vehicles in line with the agency’s thrust to revitalize the country’s manufacturing sector.

In addition, the move is being undertaken to provide more affordable options as some PUV operators have raised concerns on the high cost of modernized units.

“This is so there would be cheaper alternative, one that we can sell below P1 million,” Lopez said.

He said a Class 1 PUV, which could accommodate nine to 22 passengers, could be sold at around P900,000 to P990,000.

On the other hand, a Class 2 PUV which has a capacity of more than 22 passengers, is being sold at a higher price of between P1.5 million to P1.6 million.

Lopez said some automotive companies have already expressed interest to produce Class 1 vehicles.

“We have seen proposals from Toyota [Motor Philippines Corp.], Mitsubishi [Motors Philippines Corp.] and Hyundai [Asia Resources Inc.]. They have prototypes,” he said.

He said the funding support for Class 1 PUVs should be finalized by the first quarter of next year.

Launched in 2017, the PUV modernization program seeks to promote

 environment-friendly and more efficient public transport systems through the replacement of old jeepney units with modern PUVs which have Euro 4-compliant diesel engines or electric motors.

Meanwhile, a separate program would be crafted to support the manufacture of electric vehicles (EV).

Lopez said the support for the EVs would be similar to those provided under the Comprehensive Automotive Resurgence Strategy (CARS) Program.

Under the CARS program, participating firms can get fiscal and non-fiscal support in exchange for investments in vehicle manufacturing.