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By Katrina Mennen A. Valdez Reporter
THE local car assembly business
is likely to become a P100-billion industry in three years’ time
so long as its market expansion program (MEP) is in place, according
to the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi).
On the sidelines of the 1st
Philippine International Motor Show, Elizabeth Lee, Campi president,
told reporters that the car assembly industry would rise from the
current P91 billion.
“The MEP aims to expand the
completely knocked down (CKD) facilities here. Once the government
has implemented it, we expect a faster and healthier growth,” Lee
said.
To date, CKD investments stand at
P30 billion. As opposed to completely build up (CBU) units, which
involve no investments in manufacturing capacity, CKD units
require domestic assembly facilities and so generate jobs.
The MEP is expected to bring in
more CKD investment facilities by reducing the manufacturing cost
through lower electricity rates, labor costs, and excise taxes.
Lee said that car models that
have reached their end-of-production in other Asian countries could
be assembled locally.
“Car makers would always say
th[e] Philippines has a small market base. However if we are able to
bring down the price of cars then we could tap a wider market, which
include the middle class and the small and medium enterprises,”
she said.
Lee, who is also the executive
vice-president of Universal Motors Corp. said the industry expects
the MEP road map to be finished in October this year. The plan will
contain the program guidelines.
“Since the cycle for new car
planning among the foreign car makers ha[s] just started, the
country could be included in their long term plans,” she said.
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