DTI, JICA plan 2-yr PH auto industry potential study


A joint technical study on the country’s automotive industry and how the Philippines can take a vital position in the global value chains (GVCs) will be crafted in two years.

The Department of Trade and Industry (DTI) and the Japan International Cooperation Agency (JICA) signed a two-year technical cooperation project to come up with a study on the “Elaboration of Industrial Promotion Plans Using Value Chain Analysis.”

It will examine the Philippine automotive industry and the country’s capacity and which potential areas could be developed and make it big in the automotive GVCs.

“As a strong driver for economic growth and job creation, the automotive industry has substantial multiplier effects on knowledge transfer and linkages creation within the domestic economy. Our goal is to deepen our participation in GVCs to spur foreign and domestic investments and generate more employment,” said Trade Undersecretary Ceferino S. Rodolfo.

The agreement was signed by DTI representatives and JICA Philippine Office Chief Representative Susumo Ito. Apart from being incorporated into the Manufacturing Industry Roadmap, the study will also recommend Industrial Promotion Plans including action plans encompassing the sectors automotive, auto-parts, and auto-electronics.

“The DTI-JICA project complements the country’s Comprehensive Automotive Resurgence Strategy (CARS) Program. Through CARS, we intend to become a full participant in the value chain of automotive manufacturing in the region,” said Rodolfo, who is also the head of DTI’s Board of Investments (BOI).

Signed into law by President Benigno S. Aquino 3rd as Executive Order No. 182 in May last year, the program provides fiscal support for investment in the production of auto parts and other strategic parts that are not normally produced in the country, and provides variable incentives to induce both volume production and logistics efficiency.

The CARS program targets to generate 200,000 new jobs, bring in fresh investment worth $1.2 billion, stimulate local demand by increasing vehicle sales to $9.2billion, and effectively implement industry regulations that will revitalize the industry.

The program is anchored on the resurgence of the automotive manufacturing industry and preparing the country as a regional automotive manufacturing hub.

The six-year CARS Program also grants fiscal incentives to three car makers that will produce 200,000 units each of one registered model as a way of boosting local automotive manufacturing. Toyota Motor Philippines Corp. has entered its Vios model and Mitsubishi Motors Philippines Corp. its Mirage.

Toyota committed to invest more than ¥1 billion in the first two years of the program, while Mitsubishi set aside P4.3 billion.


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