BOI may include motorbikes, buses in auto export program

The Board of Investments (BOI) is planning to expand the coverage of the Automotive Export Program (AEP) to include motorcyles and buses, a move intended to encourage more investors and participants in the program, according to BOI managing head Elmer C. Hernandez.

The AEP gives tax incentives to local automotive parts manufacturers to export a required number of completely-built up (CBU) vehicles.

At present, there is only one participant in the AEP — Ford Motor Philippines.

Ford exports its Lynx and Focus car models as well as its sports utility vehicle Escape and the Mazda Tribute, a sports utility vehicle.

Other local automotive manufacturers, such a Toyota Motor Philippines, is still waiting for the BOI to include the export of autoparts into the AEP or some similar export program.

Toyota has a large autoparts manufacturing operation under its Toyota Autoparts subsidiary and would rather have its autoparts operations be the participant in an export program as it is not too keen on going into CBU export.

Toyota already has an extensive regional manufacturing operation.

Likewise, other Japanese automotive manufacturers already have established assembly operations in the region.

But more importantly, the poor state of the Philippine domestic motor vehicle industry does not make the Philippines an ideal base for export operation, except for Ford which does not have a strong manufacturing operation in the region.