MANILA, Philippines - The country could generate $16.84 billion or P757.8 billion worth of savings in foreign exchange requirements from an expected reduction of vehicle imports when the government implements a five-year program to support the local automotive industry, the Department of Trade and Industry said.
“(We expect) huge reduction in forex requirements resulting from reduced completely built units imports with savings amounting to $16.84 billion or P757.8 billion from the government’s program for the automotive industry,” Trade Assistant Secretary Rafaelita Aldaba said during the Trade and Industry Development Updates held yesterday.
She said the savings would be generated as the country’s Comprehensive Automotive Resurgence Strategy (CARS) Program which seeks to make the country a regional auto manufacturing hub to be implemented over a five-year period until 2022 and is expected to lead to fewer car imports and higher local production of vehicles.
“The goal is to shift from imported to local,” she said.
At present, the bulk or 70 percent of vehicles currently being sold in the country are imported.
Aldaba said the CARS is being crafted by the government as it aims to attract investments and build domestic scale in the automotive industry, as well as help make available affordable vehicles by offering output or performance-based incentives to vehicle assemblers and parts makers.