sir dprox,
medyo baka mauunahan na tsikot phuv.....
The Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP), the organization of local parts makers, Thursday lauded the initiatives outlined by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).
CAMPI president Elizabeth Lee Wednesday said that it was moving to bring back in a few years the glory days of the automotive industry in 1996 when it sold the highest ever 162,000 units. It hopes to achieve this with each car assembler introducing a low-cost vehicle model accessible to the C segment of the market for business use.
Lee said that "to make this possible, these models must be assembled locally from completely-knocked down (CKD) kits and supported by an Executive Order that will probably ease the excise tax imposed on vehicles. We need the tax break to make the vehicles enrolled in the program affordable".
MVPMAP president Eddie Jose welcomed this move as "this is exactly what we hoped to achieve when we conceptualized our Philippine Utility Vehicle (PhUV) project. We wanted a home-grown AUV assembled from CKD kits so it will have a high level of local value-added parts and labor, thus it can be available at a low price for the CD market".
"In 1996, of the 162,000 units sold, some 141,000 units or 87 per cent were from CKD kits, thus the local auto parts industry benefited from the situation. As it is right now, the auto industry has not breached the 100,000-unit sales mark for the last nine years.
Last year, only some 55.3% of them were assembled from CKD kits and this year to-date, it is down to an even lower 46.6 per cent. Thus, CAMPI's initiative is welcome news to all of us in the local auto parts manufacturing industry", Jose adds.
Under the CAMPI scheme, Lee told reporters "we want to make vehicles available not only to the AB market which makes up only 30 per cent of society. We aim to increase production so that eventually, production costs will be reduced. This hopefully will then increase the consumer's market base which is a critical factor in making the country an attractive investment destination for foreign car makers".
Jose said MVPMAP members are elated at this latest development as local auto parts makers will surely benefit from the increased orders from CAMPI members. "This will be a welcome respite for some 50,000 workers dependent in our industry whose companies are reeling from the impact of reduced orders. Some are operating at only 40 per cent of their plant capacities and even worse, some have closed shop."
"We saw the need to do something immediately, thus the decision for MVPMAP to build a PhUV prototype. With CAMPI's initiative and MVPMAP's PhUV project, together we hope to revitalize the local auto parts industry", he continues.
"Lately, we have noted that developing countries have been propping up their auto industry by developing budget vehicles. In Thailand, the auto industry is the biggest manufacturing sector and ranks second to electronics in terms of industry sales.
"It has decided to focus on the pickup truck, making them the biggest Asean market for pickup trucks and the biggest outside of the USA.
"In the Philippines, the PhUV is our answer to this regional development, with the hope that the PhUV will gain government support ", Jose added. (PNA)
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