Auto industry bullish
The local automotive industry needs at least P41 billion in new investments from 2016 to 2019 to enable the sector to compete with car imports.
The draft of Philippine automotive industry policy assumes that the industry will infuse new investments amounting to P25 billion and an additional P16 billion by 2019.
The plan aims to increase production of completely knocked down units to 285,000 units by 2016 and 350,000 units by 2017.
It also seeks to increase the localization of parts to 40 percent of all units by 2016 and 60 percent by 2019. Parts export to the United States are expected to reach $4.8 billion by 2016 and $6 billion by 2019.
A Trade official said the industry policy direction for car manufacturing would reverse the current CKD-CBU ratio of 30:43 percent to 63:37 by 2016 and 70:30 percent by 2019.
The plan also assumes that with industry and government intervention, the automotive sector will produce 500,000 CKD units worth P336 billion by 2022, up by 43 percent from 2013’s projected output of 110,000 units.