Vehicle importation killing domestic industry

ISUZU Philippines Corp. wants the government to regulate the importation of used vehicles to increase the productivity and competitiveness of local auto manufacturers.

Ryoji Yamazaki, president of Isuzu Philippines, said in an exclusive roundtable with The Manila Times that tightening the requirements of used motor vehicles importation would mean more jobs for Filipinos, which can help prop up the economy.

Yamazaki said about 15,000 to 20,000 units of used trucks were imported into the country annually, while total demand for brand new truck was only pegged at 3,000 units per year.

“If the government can properly regulate the importation of used trucks, this will create a big chance for us to introduce brand new trucks,” he said.

The car industry directly employs 74,000 workers in the assembly and auto-parts manufacturing sectors, benefiting about half a million Filipinos, Elizabeth Lee, former president of the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), said in a previous interview with The Times.

According to the latest joint report of Campi and the Truck Manufacturers Association, Isuzu Philippines is one of the leading manufacturers of light trucks, as well as trucks and buses, with a market share of 57.58 percent and 24.54 percent.

The Isuzu Philippines executive said that the country was losing out on automotive investments to its neighbors in the Association of Southeast Asian Nations (Asean) because of the lucrative incentive packages being given to investors there.

Yamazaki added that Japanese automakers were considering expanding their facilities to China, Thailand or Indonesia because of the twin disasters that struck the nation early this year and the appreciation of the yen.

The Philippines, under the previous Motor Vehicle Development Program and the Comprehensive Motor Vehicle Development Program, both restrict—but not prohibit—the entry of used imported vehicles and parts.

Thailand, Yamazaki added, may have banned the importation of used vehicles.

Isuzu Philippines urged the government to act fast to boost the competitiveness of the local automotive industry to persuade foreign automotive companies to invest here.

“If some kind of incentives for domestic manufacturing vehicles are realized, compared with the movement of Thailand and Indonesia, we may still have some handicap,” Yamazaki said.

Local car companies has urged the government to step up the country’s competitiveness amid the zero-tariff regime that will cover members of the Asean beginning in 2015.

Asean groups the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.

“Competition among Asean countries can be very severe. Philippine demand has been growing very steadily, but comparing as a country to Thailand [and] Indonesia, their movement is very dynamic,” said Yamazaki.

Total demand in the Philippines may reach 200,000 next year, a fifth of the projected total demand in Indonesia of 1 million. –KRISTA ANGELA M. MONTEALEGRE REPORTER, Manila Times