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As the 30-year-old Chamber of Automotive Manufacturers of the Philippines (CAMPI) continues to welcome more foreign car makers into the country, CAMPI president Rommel Gutierrez sees the need for the government to come up with a new car manufacturing program that will encourage more investments into the Philippine automotive sector.
In an interview, Gutierrez pointed out the need for a new automotive manufacturing program to help incentivize the local car manufacturing sector, especially with the entry of Chinese car makers and the growing acceptance of hybrid and electric vehicles.
He pointed out that the old six-year Comprehensive Automotive Resurgence Strategy (CARS) program that was established in 2015 by former president Benigno Aquino, which was established through an executive order, was supposed to attract new investments, stimulate demand, and lead to the implementation of industry regulations to revitalize the Philippine automotive industry and develop the Philippines as a regional automotive manufacturing hub.
The CARS program ended in 2021 and has not been replaced as the succeeding governments’ priorities shifted. Even then, only two companies – Toyota Motors Philippines Corp. and Mitsubishi Motors Philippines, Inc. actually participated in the program.
This time around, to ensure that the program leaves a lasting legacy, Gutierrez believes that such a program should be legislated. In fact, a local manufacturing bill had been sponsored in the past by Rep. Rufus Rodrizguez, but unfortunately has no counterpart bill in the Senate.
Interest in the Philippine market is such that CAMPI has recently approved the application for membership of Elon Musk’s Tesla, Vietnamese brand Vinfast, and is also awaiting the submission of additional documentation from Chinese electric vehicle manufacturer BYD before it formally accepts the Chinese auto brand as an official member of the group.
BYD has a partnership with the Ayala Group’s ACMobility for the distribution of its electric vehicles in the Philippines
China’s BYD, along with several other Chinese car makers and Vinfast, are getting stronger in the Philippines, Gutierrez admitted, “They are fast growing in numbers, so much so that I can’t even remember all of the new entrants, or even their logos.”
Gutierrez, who is also the first vice president for corporate affairs of Toyota Motor Corp., assured that CAMPI welcomes the new players. With the official acceptance of Tesla and soon of BYD, the automotive manufacturers’ group would be able to better track motor vehicle sales of its 28 members.
“That’s why we want them in so that we can capture the real numbers, with so many Chinese car manufacturers coming in, we will be able to see the numbers,” adding that “the figures are becoming relevant.”
“In fact, we are even categorizing now. We already have a segment for the electrified vehicles, unlike before, we just include them (in the overall count). But now we have to really categorize and identify them because they are really part of the growth of the auto industry,” the CAMPI president said.
The interest of the Chinese brands and Vinfast, he added, show “the potential here for pure electric and hybrid.”
While China leads in the production of electric vehicles, it has recently decided to also produce hybrid vehicles.
According to Gutierrez, the Chinese manufacturers have seen how hybrid vehicle sales have grown globally. In terms of percentage sales, he said,“ it’s the hybrid that really has a big chunk – more than 90 percent, even as EVs are starting to make an impact.”
Gutierrez pointed out that “hybrid is a sort of transition to full electric.”
Although Toyota has focused more on hybrid vehicles, it is also producing electric vehicles, especially for its high-end Lexus brand.
As for the Trump administration’s push to bring automotive manufacturing back to the US, Gutierrez expressed his view that perhaps President Trump “may be bluffing, or he could be serious. But again, he will understand over time it will not happen overnight, you know? To decide where to put your plant is really a long-term plan. It’s not easy. Even region-wide it’s very difficult to decide where to put up your plant, there are a lot of factors involved.”
Furthermore, Gutierrez explained, the process to decide even on a new vehicle model “easily takes at least eight years for a specific model in any country. Even the parts alone will take at least two years. So it’s really a strategic move that really takes time. More or less the time is already established at this point.”
He continued that “even in Toyota, many years ago, they have already established a common platform to make economies of scale within the region. When you talk of the Philippines, we not only talk about here, but region-wide, there is that complementation, parts and components, and even CBUs (completely built up) units. So, that is well established, including the parts makers, which are very very important. So, relocating a plant is not easy.”
Based on CAMPI’s website, it members are BMW, Columbian Autocar Corp. or CAC, Changan Auto, Chery, Daewoo, Ferrari, Ford, Foto, Hyundai, Honda, Isuzu, JAC, KIA, Mazda, Mercedes Benz, MG, Mitsubishi Motors, Nissan, Peugeot, Suzuki, Toyota and Volkswagen.
Regular members of CAMPI are Columbian Manufacturing Corp., Foton Motors Philippines Inc., Honda Cars Philippines Inc., Isuzu Philippines Corp., Columbian Autocar Corp., Mitsubishi Motors Philippines Inc., Nissan Philippines Inc. and Toyota Motor Philippines Corp.
Associate members include SMC Asia Car Distributor Corp., IC Automotive Inc., United Asia Automotive Group Inc., Velocita Motors Inc., Ford Group Philippines Inc., Hyundai Motor Philippines Inc., IC Land Automotive Inc., Jetour Auto Phil. Inc., Berjaya Auto Asia Inc., KP Motors Corp., IC Star Automotive Inc., SAIC Motor Philippines Inc., BA Motors Philippines Inc., Suzuki Philippines Inc. and Automobile Central Enterprises Inc.
