The approved changes include the "manufacture or assembly of a basic Philippine utility vehicle with high local value-added" as projects which may qualify for pioneer status, hence eligible to receive greater tax incentives.
The revision was proposed by the BOI’s Motor Vehicle Products Division in response to the clamor of the Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) for an affordable Philippine utility vehicle (PhUV).
The PhUV is aimed for the transport of both passengers and goods/cargoes. It would be introduced at a very affordable price without sacrificing safety, roadworthiness and environmental regulations. The primary target markets of this vehicle type are buyers of low-priced used motor vehicles such as overseas Filipino workers.
The initial ceiling price being eyed for the PhUV is at around P350,000.
The PhUV should be unique and distinct from the utility vehicle being produced by the Motor Vehicle Development Program (MVDP) participants.
As a minimum requirement, the BOI said applicants under this project must be a registered participant under Executive Order 156.
The MVPMAP is spearheading a revival of the glory days of the Philippine automotive industry, anchored on the People’s Car Program. But under its proposed the MVPMAP is introducing a brand-new vehicle at the price of a second-hand car but with a high level of local content.
The MVPMAP board met recently with local car and truck assemblers, the Department of Trade and Industry, the BOI, the Tariff Commission, the Export Processing Zone Authority, Sen. Richard Gordon, chairman of the Senate Committee on Transportation and his counterpart in the House, Rep. John Cua, to discuss the possible revival of the People’s Car Program.
According to the MVPMAP, the banner year of the Philippine automotive industry was in 1996 when 141,000 units of completely knocked down vehicles (87 percent) and 21,000 units of completely built up cars (13 percent) were produced. The production of 162,000 units was the highest or record.
It was also a boom year for the local auto parts makers as well.