MANILA, Philippines - The automotive industry roadmap will be released later than planned as the Board of Investment (BOI) needs to consult with other government agencies on fiscal and non-fiscal measures to help spur growth of the sector, an official said.
“There was a delay because we have to make some review of the policies (and) we have to link up also with other government agencies in terms of the implementation of some of the strategies,†BOI executive director Lucita Reyes told reporters yesterday on the sideline of the Manila International Auto Show (MIAS) 2013.
In February, Reyes said, the BOI had planned to release the road map within the March to April period.
“We are hoping (we can release it in) within a few months. The industry is aware of it already...It’s just a matter of putting the measures, how to implement it,†she said.
She said the BOI still needs to discuss with the Department of Finance fiscal measures the government plans to introduce to support the local automotive industry.
The agency likewise needs to consult with other government agencies on non fiscal measures being proposed such as the refleeting of vehicles that are 10 years and above, as well as making registration with the Land Transportation Office of completely-knocked down units easier compared to completely built units.
Reyes said the government is crafting a road map to help the automotive industry become one of the strongest drivers of the country’s economic growth by encouraging more investments.
“We think the continued growth of the industry will lead to tremendous employment generation,†she said.
The local automotive industry employs 868,000 individuals.
For the local automotive industry to grow, Reyes said the government wants investments in the sector to rise to P161 billion by 2022 from P120 billion in 2011.
She said there is room for growth in the local automotive industry given improving economic conditions.
Analysts expect the country to reach the $2,500 income per capita this year which will allow motorization to kick-in.
Based on the reports of the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Association of Vehicle Importers and Distributors, Inc., there were 184,248 units sold last year.