Senate to look into proposed auto industry road map

MANILA, Philippines - The Senate is set to look into the proposed automotive industry roadmap to ensure it is in line with other government policies and existing incentives offered are maximized.

Speaking at the 5th Philippine International Motor Show organized by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) yesterday, Senator Paolo Benigno “Bam” Aquino IV said that in pushing for the growth of the automotive industry, there is a need to ensure the road map is aligned with other existing policies.

“When it comes to the automotive industry, if you want this sector to create more jobs for Filipinos, we need to make sure it’s integrated with other plans for the rest of the society,” he said.

Aquino, who chairs the Senate Committee on Trade, is filing a resolution on Monday to look into the proposed automotive industry road map.

The “sector is asking that we review the automotive roadmap. We’ll call for a hearing, ask DTI (Department of Trade and Industry), CAMPI for the current automotive roadmap and see if we need to have process to improve it,” he said.

He said the Senate hearing would present the automotive roadmap to the public and look at how to harmonize the plan with different policies.

While industry players have been seeking government support to promote the growth and competitiveness of the automotive sector, Aquino said there might be no need to offer new incentives.

“We already have current incentives with BOI (Board of Investments). I don’t think we need to have new incentives. We need to maximize the current incentives,” he said.

With demand for cars on the rise in the country, the necessary infrastructure will also have to be put in place.

“At the minimum, we need to look at our infrastructure. It’s important our infrastructure roadmap takes into consideration the type and number of cars on the road,” Aquino said.

For its part, the CAMPI welcomes a Senate hearing on the proposed automotive industry roadmap.

“The Senator sees the importance of a roadmap for the automotive industry. He’s aware of efforts of DTI. He’s willing to support and align other government policies so that the roadmap will really be comprehensive,” CAMPI president Rommel Gutierrez told reporters.

Toyota Motor Philippines Corp. president Michinobu Sugata added that while the company is committed to continue making investments here, it needs to see the roadmap first before looking at new vehicle models to be assembled here.

“We still have to think about it. We have no idea what kind of obligations we need based on the roadmap,” he said.

Mitsubishi Motors Philippines Corp. vice president for marketing services Froilan Dytianquin agreed, reminding the assembly of a new vehicle model cannot be finalized without the automotive industry roadmap.

“We need to see the roadmap first,” he said.

Honda Cars Philippines Inc. president and general manager Toshio Kuwahara said the company is likewise waiting for the roadmap.

“We have to wait for what government wants and expects from us in manufacturing,” he said.

The DTI is working on the draft of the automotive industry roadmap.

Trade Secretary Gregory Domingo has said the government may limit the number of automotive firms that could qualify for incentives to those able to meet certain production level requirements and support the ambition of making the country a manufacturing hub.