Gov’t scraps motorbike dev’t plan due to lack of interest

The government will likely drop a plan to draw up a separate development program for the motorcycle industry following the lack of interest on the program.

Board of Investments (BoI) managing head and Trade Undersecretary Elmer Hernandez said BoI is still waiting for the industry to submit their own development agenda that was agreed on when motorcycle makers indicated keen interest to have a separate development program from the Motor Vehicle Development Program (MVDP).

The motorcycle industry has even informed the government that it is already readying to submit their own development program. It has been months since Hernandez said he last heard from the industry and expressed doubts if the industry is still interested to pursue an independent scheme.

Hernandez earlier said having a separate program for the industry is a move that would prepare motorcycle makers in facing greater global competition.

“The government is always open to industry suggestions,” Hernandez said. “The industry is growing very fast and registering significant growth over the years. There’s no stopping government from having separate program for motorcycles,” he said.

Hernandez said he was approached by the leading players in the industry which proposed a separate development program exclusive for them.

Despite the threat of globalization under the country’s various international commitments, the motorcycle industry is firm in its position not to be included in the sensitive lists of products.

The sensitive list include products that may be threatened under an open economy, and thus enjoy certain tariff protection from government.

If the industry pushes for a separate development program, the BoI said it will have to consult people from the industry to come up with a program that should carry new policies on how to address safety features, quality and standards and exports.

The local motorcycle assembly business is dominated by Japanese manufacturers led by Honda Philippines Inc., Kawasaki Motor Philippines Corp., Suzuki Philippines Inc., MCX Motor Philippines, Eastworld Industrial Sales and Norkis Trading Corp. (Yamaha).

Under the MVDP which also include parts and components makers, there are 23 listed motorcycle participants with an average annual production capacity of 555,100 units; 19 passenger carmakers (221,450 units); and 23 for commercial vehicles (145,950 units).

Members of the Motorcycle Development Program Participants Association Inc. have earlier projected to hit an estimated sales of about 1.2 million by 2012. Actual sales registered in 2007 hit 549,000 units. –Ayen Infante, Daily Tribune