MANILA, Philippines – Sales of locally manufactured vehicles (LMV) went up by 18 percent in 2010 when compared to the previous year as the local automotive industry continues to improve.
In a report, the Philippine Automotive Competitiveness Council Inc. (PACCI) said that 67,951 LMVs were sold last year. PACCI members contribution to the whole auto manufacturing sector is estimated at around 90 percent.
The report likewise showed that 9,861 units were exported to the ASEAN markets, up 35 percent from a year ago.
Exports of automotive parts amounted to $3.1 billion consisting largely of wiring harness, transmissions, instrument clusters, aluminum wheels, tires, ABS modules and semiconductor assemblies and which also includes batteries, forgings, stampings and cast products.
“Besides the growth of exports of automotive component parts, the local parts’ industry must be strengthened to play a vital role in the growth of local vehicle production, which is only operating at 60 percent of plant capacity utilization. Incentives from (the recently amended Motor Vehicle Development Act) E0877A are still eagerly awaited to maximize production opportunities,” PACCI chairman Feliciano Torres said.
PACCI President Michinobu Sugata added “the manufacturing sector remains optimistic that appropriate government support can be achieved to allow the Philippines to become regionally competitive as vehicle demand steadily increases with ASEAN economic growth.”
A recent Economic Study done by the University of Asia and the Pacific validated the strong multiplier effect that the local automotive industry has on the economy, establishing it as one of the top industries having extensive production linkages with downstream benefits to the economy.
The local automotive manufacturing sector directly employs over 70,000 employees and its support industries generate an additional 340,000 employees dependent on this sector. –Ma. Elisa P. Osorio (The Philippine Star)
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