CODVIP e-sports betting
ye7 PH remains heavily reliant on imported vehicles
Evariste M. Cagatan, Director of the Board of Investment’s manufacturing industries service | PHOTOS: BOI, STOCK
Seven in every 10 automotive vehicles sold in the Philippines today are still imported, highlighting the need to improve the capacity of local manufacturers to bring down the prices of automobiles in the country, according to a trade official.
Evariste Cagatan, the director of the Board of Investment’s (BOI) manufacturing industries service, on Tuesday said that vehicle imports accounted for 71 percent of the total sales for the period covering 2015 to 2023.
Article continues after this advertisement“Imagine the foreign exchange savings that we could have had, if only we are able to produce more of what the people buy locally,” Cagatan said during her speech at the Automotive Reverse Trade Fair held at the Philippine International Convention Center (PICC) Complex in Pasay.
FEATURED STORIES BUSINESS Buying gold can be this affordable BUSINESS PH remains heavily reliant on imported vehicles BUSINESS How hybrid rice can feed the PhilippinesREAD: PH vehicle production hit peak 2024 growth in August
She said that the Philippine market is big enough to support the local automotive industry, given that 63 percent of its 116 million population belongs to the working sector.
Article continues after this advertisement“Unfortunately, our market is served by a big portion of imports coming from our neighboring countries, both CBU (completely built units) and CKD (completely knocked down units),” she added.
Article continues after this advertisementCagatan also said that the local supply chain remains limited and that regulatory challenges persist, which make it easier to import CBUs rather than building the vehicles locally.
Article continues after this advertisementTo address the issue, Cagatan said that the BOI aims to strengthen the network between local parts manufacturers and the automotive assemblers and manufacturers.
The latest data from the Asean Automotive Federation (AAF) show that the Philippines’ produced 10,554 units of vehicles last September, marking a 27.1 percent growth from the 8,303 vehicle units manufactured during the same month in 2023.
Article continues after this advertisementFrom January to September, local vehicle makers produced 97,139 units, indicating a growth rate of 18.3 percent from the 82,092 units tallied in the same period a year ago.
In terms of production growth during the nine months, the Philippines was second among its peers in the Association of Southeast Asian Nations (Asean), second only to the 136 percent of Myanmar — a country which had a relatively small output volume of 812 units.
Thailand, the biggest producer, had an output 1,128,026, but suffered an 18.6 percent decline.
Indonesia’s output dropped by 17.1 percent to 881,574 while Malaysia saw its own grow by 4.7 percent to 593,050.
Subscribe to our daily newsletter
Meanwhileye7, Vietnam recorded a contraction of 6.2 percent as output settled at 116,077 units.
READ NEXT Unleash your inner crocodile, Lacoste presents the LC33 First Gen secures LNG supply from Shell Eastern EDITORS' PICK CA approves Jonvic Remulla’s appointment as DILG chief An emotional Rafael Nadal retires after Davis Cup exit How to watch Gilas Pilipinas at Fiba Asia Cup qualifiers Solon: OVP, DepEd release of CF to various areas daily is impossible No pension fund yet for 600,000 waitlisted poor senior citizens PNP to avoid lavish Christmas parties, spend more on typhoon relief MOST READ SC declares null and void Guanzon's substitution for P3PWD party-list VP Duterte laments Mindanao Railway Project's delayed construction Solon: OVP, DepEd release of CF to various areas daily is impossible House probe: OVP, DepEd CFs received by same man, different signatures Follow @FMangosingINQ on Twitter --> View comments