Car prices may be lowered in 2010 bec of JPEPA

[br733]

I did some research regarding jpepa and it seems tariff rates on vehicles with engines displacement of 3 liters and above will go down from the present 30% to 0% effective 2010. Tariff rates for vehicles with less than 3 liter engine displacement will go down from 20% to 0%

But it also states that the Philippine government can re-negotiate to defer 0% tariff for vehicles with 3 liter or more engine displacement.

If the Philippine government does not re-negotiate, it seems there will be a reduction on car prices.

This applies to vehicles originating from Japan.

[tidus1203]

So mga JDM vehicles lang? I assume Thailand made Japanese branded cars are not included?

[istan]

Yep, JDM. Thai made Jap brand cars not included. So, hmm...Accord/Pilot, Lexus?, Subaru?, Prado comes to mind.
You think they'll pass on the cheaper price to the end consumers? I'll ruin their price scales...
So I think they won't.

[ssaloon]

The very expensive Rav4 will finally get lower prices.

I think basta CBU Japan, sakop siya nito.

[br733]

Yep, JDM. Thai made Jap brand cars not included. So, hmm...Accord/Pilot, Lexus?, Subaru?, Prado comes to mind.
You think they'll pass on the cheaper price to the end consumers? I'll ruin their price scales...
So I think they won't.

Oo nga, you raised a valid point. This will create chaos in the pricing of cars sold locally since a lot of Japanese cars are made in Thailand. Will the car companies simply pocket the custom's duty savings? That is a substantial windfall profit per vehicle.

This year alone, customs duties for jdm vehicles are down from 29% to 20% already. The question is which models sold locally are imported from Japan? I think carmakers even raised prices this year bec. of the stronger yen, I suppose.

One car advertised as being made in Japan is Teana. I sure have not heard any price reduction from Nissan.

Besides RAV4, I think, Prado, Previa, Land Cruiser, Teana are CBU Japan I think. What other models are CBU Japan? What about yung Lexus?

[tidus1203]

Suzuki Swift might probably sell in Vios 1.3 teritory...

[vito corleone]

i think another made in japan car is the lancer ex. . .if it becomes cheaper, we may see more of it in the streets of manila =)

[leopaul]

Oo nga, you raised a valid point. This will create chaos in the pricing of cars sold locally since a lot of Japanese cars are made in Thailand. Will the car companies simply pocket the custom's duty savings? That is a substantial windfall profit per vehicle.

This year alone, customs duties for jdm vehicles are down from 29% to 20% already. The question is which models sold locally are imported from Japan? I think carmakers even raised prices this year bec. of the stronger yen, I suppose.

One car advertised as being made in Japan is Teana. I sure have not heard any price reduction from Nissan.

Besides RAV4, I think, Prado, Previa, Land Cruiser, Teana are CBU Japan I think. What other models are CBU Japan? What about yung Lexus?

Dapat kasi cars branded from Japan para maging sure, even cars which are Japanese-branded but built in other countries...

[oliver1013]

I was able to chat with some people from DFA some months ago at a party and one of the topics was this JPEPA treaty. All of them are against its implementation. Masyado daw tayo lugi, although lower prices of cars and some products are one of the benefits for us, medyo hindi maganda yung ibang kapalit, isa na dun yung toxic wastes ng Japan na parang sa pagkakaintindi ko dito satin dadalhin, tsaka yung fishing in territorial waters. Ang pagkakaintindi ko sa explanation nung isa dun eh parang we can fish in their home waters and so can the Japanese in our home waters. Eh hello wala tayong capabilities dun(at the same time ang alam ko simot na isda sa Japan) samantalang mga Hapon kung dumating sila rito with their huge fishing vessels ubos isda natin. Marami pa daw actually pero yan lang naalala ko, basta bottom line lugi tayo in the long run.

Just sayin..

[rusem]

I did some research regarding jpepa and it seems tariff rates on vehicles with engines displacement of 3 liters and above will go down from the present 30% to 0% effective 2010. Tariff rates for vehicles with less than 3 liter engine displacement will go down from 20% to 0%

But it also states that the Philippine government can re-negotiate to defer 0% tariff for vehicles with 3 liter or more engine displacement.

If the Philippine government does not re-negotiate, it seems there will be a reduction on car prices.

This applies to vehicles originating from Japan.

im not sure if this applies only to vehicles coming from japan. from what i know lahat ng imported cars will be 0% tariff. this will be good for consumers but might kill the local automotive industry. these plants in thailand are very efficient. producing units at around 5k per day compared to our local plants. One of our local plant produces a mere 45 - 50 units per day. also in thailand production cost per unit is way cheaper due to utilities (power, water, fuel). Philippines has one of the higher cost when comes to power. from what i know di competitive ang price ng local manufacturer's natin sa imported kung cost per unit lang ang paguusapan. tapos 0% rated pa tariff ngayon.