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THE
local automotive industry will submit to Malacaņang in
October a draft executive order intended to set in
motion its proposed market expansion program (MEP) that
would jack up total investments of auto makers to P100
billion in three years.
Elizabeth H. Lee, president of the Chamber of Automotive
Manufacturers of the Philippines Inc., said the EO would
complement the existing Motor Vehicle Development
Program and is meant to encourage the mother companies
of the vehicle makers in the country to bring in more
models for domestic production.
Once the
desired economies of scale is reached, Lee said vehicle
prices could be lower, making certain models accessible
to the C economic segment. Among others, the draft EO
would require the grant of fiscal and nonfiscal
incentives, like excise tax exemption or reduction, to
automotive manufacturers participating in the MEP in
addition to those now under the motor vehicle
development program.
At end
of 2006, the industry total investment in the country
had reached about P91 billion.
With
more models to be assembled here from completely knocked
down units, more jobs will be generated, along with
business opportunities for local auto parts makers. The
MEP is seen to be in place this year for the local
industry to register in the radar of global
manufacturers eyeing locations for their next offshore
assembly hubs in the next five to 10 years. |
