The Department of Trade and Industry (DTI) said Germany’s BMW Group is planning to increase its purchase of local automotive parts and is also keen on supplying electric vehicles to the Philippines.
At the close of a weeklong trade and investment-promotion mission to Germany, Trade Secretary Ramon M. Lopez said the BMW Group has expressed interest in buying more auto parts from the Philippines, in line with its strategy for the Asean region.
“Currently, BMW imports €16 million worth of auto parts [components and electronic control units] from the Philippines annually,” Lopez said in a text message to reporters.
“BMW intends to increase that value in coming years in support of its Asean strategy, which identified Thailand and Malaysia as its manufacturing hubs, and
the Philippines as its auto-parts supplier,” he added.
Electronic goods and electronic construction machinery are the Philippines’s top exports to Germany, followed by aircraft, chemical and pharmaceutical products.
Aside from its plan to purchase local auto parts, Lopez said the BMW Group has also indicated its interest in bringing its hybrid vehicles to the Philippines.
He added the German firm is also seeking a tie-up with the E-Vehicle Association of the Philippines to set up electric-vehicle charging stations in the country.
Data from the Philippine Statistics Authority (PSA) showed that the European Union (EU) was the Philippines’s fourth-largest trading partner in 2016, accounting for a 9.7-percent share of total trade last year. Bilateral trade between the EU and the Philippines reached $13.71 billion in 2016.
Of the total bilateral trade between the Philippines and the EU last year, Germany accounted for the biggest share at 31.8 percent, or $4.53 billion.
Shipments to Germany amounted to $2.3 billion, while payments for imports reached $2 billion. The Philippines enjoyed a trade surplus of $301.32 million with Germany last year.
Lopez said his meetings with German business chambers focused on “Dutertenomics” and the government’s efforts to achieve inclusive growth.
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