Car industry aiming for Asean single market

THE automotive manufacturing industry roadmap, which was unveiled on Tuesday at the Third Automotive Manufacturing Summit, proposes the transformation of the industry from assembly of completely knocked down units for the domestic consumers to outright manufacturing of vehicles for the local and export markets.

In a press conference, Philippine Automotive Competitiveness Council Inc. (Pacci) President Feliciano Torres said that the industry must act now to build scale and attain regional competitive to be able to take advantage of the Association of Southeast Asian Nations (Asean) single market.

“We can and should aim to become an alternative Asean production hub. We have the strengths—a total production capacity of 250,000 units annually and an abundant supply of skilled manpower in the field of auto and auto parts and components manufacturing,” Torres said.

He added that an important aspect of the industry roadmap development process is the renewal and strengthening of the strategic partnership between the government and the private sector.

“This public-private partnership approach must be established as this will insure that sectors development directions, reforms and policies are appropriate and consistent with the vision of all of the industry’s stakeholders,” Torres said.

In the same event, Vicente Mills Jr., president of the Philippine Automotive Federation and the Asean Automotive Federation, said that it is imperative that the transformation take place to address the declining share of locally manufactured vehicles (LMV) in the domestic market, and allow the industry to access and meaningfully participate in the soon-to-evolve Asean common market.

“Over the period from years 2002 to 2010, local sales of LMVs declined from 96 percent to 44 percent of total sales. When compared to total new registrations, the share of LMVs in 2010 is even lower, at 34 percent, or 75,000 units—a third of the industry’s total production capacity of 250,000,” he added.

The roadmap identifies the establishment of production facilities of some critical parts currently not locally available, as a core component of the future competitiveness of the industry.

“To achieve competitiveness of our vehicles, we must build or expand capabilities in manufacturing critical parts such as vehicle body stampings, injection molding of large parts, engines, suspension and steering and other parts that we don’t currently produce in the Philippines,” he added.

According to Pacci, by 2015, vehicle demand is projected to reach 300,000 units while current plant capacity is 250,000 units.

Also, Pacci accounts for over 75,000 highly skilled workers (direct and indirect), with dependents of nearly half a million.

Pacci members include the Motor Vehicle Parts Manufacturing Association of the Philippines, Ford Motor Co. Philippines, Honda Cars Philippines Inc., Isuzu Philippines Corp., Mitsubishi Motors Philippines Corp. and Toyota Motor Philippines Corp. –RAADEE S. SAUSA REPORTER, Manila Times