Higher localization of parts in automotive pushed

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The Board of Investments (BOI) is eyeing to increase the localization of automotive manufacturing by encouraging investments in parts making.

Ronaldo Buluran, BOI assistant director, said the agency is hosting the Auto Reverse Trade Fair (ARTF) on November 19 in Manila aimed at connecting local motor vehicle parts manufacturers with automotive, motorcycle, and electric vehicle producers and assemblers for possible sourcing of essential components of their vehicle models in the Philippines.

“Through the ARTF, the BOI expects to localize the manufacture of more auto parts, which are currently being imported, by giving auto manufacturers or assemblers the opportunity to showcase these to domestic parts makers,” Buluran said.

The BOI hopes to strengthen the supply chain in accordance with the goals of various automotive manufacturing programs like the Motor Vehicle Development Program, the Comprehensive

Automotive Resurgence Strategy Program, as well as of the Corporate Recovery and Tax Incentives for Enterprises Act.

The Philippine automotive parts manufacturing industry is highly concentrated in Cavite, Batangas and Cebu. Products include plastic parts injection, steel and metal fabrication, die, wiring harness, rubber parts, battery accessories, stamping parts, vehicle bodies signaling and lighting equipment, brake hose, plastic boards/parts, spokes and nipples, electric junction box and metal parts. The industry is known to have strong industry linkages from iron and steel, rubber petrochemical, to electric systems and surface treatment.