Embed Size (px)
DESCRIPTION
Citation preview
PHILIPPINE MOTOR VEHICLES, PARTS AND ACCESSORIES :
With the improving political and economic climate in the Philippines, the nation’s automotive industry is on the path to recovery. It is anticipated that significant trade liberalization will reshape the market, transforming the country into consumer market rather than an automotive assembly destination. Over the long-term, increasing personal disposable income and more stable exchange rate are expected to contribute to the health growth to this field.
After years of protectionism in the form of tariffs, local content and import restrictions, the Philippine automotive industry has yet to achieve significant progress. However, the nation is set to experience a drastic change as the government embarks on radical trade liberalization. As the provisions, of Asian Free Trade Area (AFTA) are fully implemented, completely built units will become more attractive compared to local assembling and manufacturing. The Philippine government is committed to liberalizing the automotive industry to better prepare itself for global competition. However, this will make some vehicle assemblers and component manufacturers redundant. Consequently, there will be a growing consolidation in the Philippine market.
Production /Sales :
According to the Department of Trade and Industry, the production capacity for parts and accessories of automotive vehicles which include utility vehicles, pick-up, vans, trucks, buses, special purposes vehicles and motorcycles is estimated at 3 million units/year.
There is rise expectation in production for 2010, however, local assembly is under threat from moves to reduce import tariffs, which would erode the competitive advantage of manufacturers producing locally. Toyota, as one of the firms using the highest level of local content in its vehicles, would be particularly hard hit and has revealed that it is considering the future of its production operations. Newcomers have not completely built units (CBUs) , to be followed by domestic assembly of kits. The carmaker has reveled plans to build a plant in the Subic Bay Freeport Zone to produce low-cost cars for what it labels the B, C, and D income brackets, which account for around 75% of its sales.
Meanwhile, sales in 2009 for Philippine Automotive industry was at 132,444 units and sales in 2008 will be 124,449 units an increased of 6.037%. The strong growth has been cited as one of the contributing factors to this performance and stable economic indicators.
Toyota retains its dominant market lead with 38% sales, second-placed Honda with 14% of the market and Mitsubishi was a close third with 12%.
Passenger car sales make up 35.2% of the market while Commercial Vehicles continue to dominate the market with a 64.8% market share.
Hence, the increase in the Commercial Vehicles was due to the preference to diesel-fed models brought about by the increase in fuel prices.
1
Market for Auto Parts and Accessories :
The target group of parts and accessories of motor vehicles include men and women of ages 20-70 years old and who are in Class A (Very Rich), Class B (High Income Group), Class C and D (Middle Income Group).
In the Philippines, there are numerous auto garage or shops which cater for the repair and maintenance of various vehicles. Most Filipinos would like to maintain their cars appropriately than to buy new cars because of the high prices.
Meanwhile, many Filipinos are now shifting to motorcycles because of the high prices of gasoline and the prices of a brand new cars.
Channels of Distribution/Marketing :
The Manufacturers of Automotive sell directly to the Dealers of Automotive which are situated in the different areas in the Philippines. Likewise, the Dealers sell directly to the consumers or buyers of the automotive.
The Exporters of Automotive Parts and Accessories from different countries are being imported by the Philippine Importers and Wholesalers and sells to the Retailers until to the end users or consumers or buyers.
Manufacturers of Automotive
Consumers/Buyers
AccreditedDealers of
Automotive
Exportersof Automotive PartsVarious Countries
Philippine ImportersWholesalers
Retailers
Consumers/ Buyers
2
Philippine Trade Statistics of Motor Vehicle, Parts and Accessories :
Philippine Imports from the WorldYear US$ MillionJan-Sept. 2009 1,417.582008 1,973.212007 2,136.382006 2,017.54
Philippine Exports to the WorldYear US$ MillionJan-Sept. 2009 1,160.252008 2,213.732007 1,501.782006 1,203.55
Philippine Imports from ThailandYear US$ MillionJan-Sept. 2009 571.112008 738.342007 618.602006 496.60
Philippine Exports to ThailandYear US$ MillionJan-Sept. 2009 231.512008 473.782007 312.202006 583.20
Source : World Atlas
The products of motor parts and accessories include compression-ignition internal combustion piston engine (diesel or semi-diesel), Complete Knock-Down (CKD), Complete Built-Up , Chasis fitted with engines, Bodies (including cabs), Bumpers and parts, Safety seat belts, Components of door trim assembly, Brakes and servo-brakes and parts, Gear boxes, Drive-axles with differential, whether or not provided with other transmission components fully assembled and not fully assembled, Non-driving axles and parts fully assembled and not fully assembled, Road wheels and parts and accessories, Suspension shock-absorbers, Radiators, Silencers and exhaust pipes, Clutches and parts, Steering wheels, steering columns and steering boxes, Unassembled fuel tanks, engine brackets, parts and accessories of radiators and Aluminum radiator core, single row.
The Top exporting countries include Japan, Taiwan, China, Malaysia, Thailand, Korea, Indonesia and Germany.
3
Importation Trend :
Based on the Philippine Import Statistics of motor parts and accessories , there is a substantial increase of the said commodities. Likewise, with the rising requirements of the manufacturers of the motor vehicles covered by the motor vehicles covered by the Car Development Program and Commercial Vehicle Development Program the importation for CKD and CBU will be in demand.
Parts Manufacturing Sector Profile :
Source : Board of Investments
The Parts and Components of Automotive include the Metals, Rubber, Seat and Trim, Plastic, Electrical and other kinds of parts and components Manufacturers which have their own factories situated in different areas in the country. However, Philippine Manufacturers of Parts and Components still dependent for the importation of raw materials to manufacture their products.
Strengths of the Industry :
The Automotive Industry of the Philippines is the pillar of economic growth. It contributes 10% to the country’s Gross Domestic Product (GDP). A successful automotive industry makes a significant contribution to its balance of payments. The auto industry plays a key role in the technology level of other industries and of the society.
1. A strong auto components sector;2. Capable workers;3. English language proficiency;4. Domestic Market that is ready to take off;5. Government understanding on the importance of the auto manufacturing
industry to the economic development of the country;
Parts and ComponentsManufacturing
Metals63 Manufacturers
(48%)
Rubber20 Manufacturers
(15%)
Seat and Trim13 Manufacturers
(10%)
Plastic12 Manufacturers
(9%)
Electrical10 Manufacturers
(8%)
Other13 Manufacturers
(10%)
4
Weaknesses of the Industry :
The Philippine automotive industry has not grown according to the government’s planned growth agenda. The setbacks suffered by the industry all these years, economic and political in nature, could well be reviewed, and analyzed, but clearly it will be just mere lessons to learn, moreover bases where new significant measures could be drawn if seriously to check new development plan that will redeem the industry’s fate to survival :
1. Small and slow growing domestic market;2. Small scale vehicle assembly plants, with low local content;3. Weak local component supply base;4. Hesitant investment drive by major players such as Toyota Motor Philippines Corp.,
Honda Cars Philippines, Inc., Mitsubishi Motors Philippines Corp., Isuzu Philippines Corp and Ford Motor Corp.;
5. Significant cost competitiveness disadvantage;6. Uncertain commitment of Philippine Government of the auto industry.
Inflow of Foreign Direct Investment to the country is key to the industry’s growth. For the past years since 2005, Foreign Direct Investments (FDI’s) made in the Philippine automotive industry have suffered a continuing decrease. Across industries in the region, inflow of FDI’s in the Philippines has been always very minimal, especially for the automotive industry. Apparently, other
ASEAN countries have better performance. In particular, Thailand alone became the second most popular FDI destination after China.
Tariff Rates : (2010)
H.S. Code Product Description MFN (%)(Most Favored Nation)
ASEAN-CEPT(%)
8702.10 Motor vehicles for the transport of ten or more persons, including the drive. With compression-ignition internal combustion piston engine (diesel or semi-diesel)
15 & 20 08702.90 Others 20 08703.10 Motor vehicles and other motor
vehicles principally designed for the transport of persons, including station wagons and racing cars. Vehicles specially designed for traveling on snow, golf cars and similar vehicles
20 08703.21 Motor vehicles and other motor
vehicles principally designed for the transport of persons, including station wagons and racing cars. Of a cylinder capacity of not exceeding 1,000 cc.
5
30 08703.22 Motor vehicles and other motor
vehicles principally designed for the transport of persons, including station wagons and racing cars. Of a cylinder capacity of exceeding 1,000 cc. but not exceeding 1,500cc
30 08703.23 Motor vehicles and other motor
vehicles principally designed for the transport of persons, including station wagons and racing cars. Of a cylinder capacity of exceeding 1,500 cc. but not exceeding 3,000cc
30 08703.24 Motor vehicles and other motor
vehicles principally designed for the transport of persons, including station wagons and racing cars. Of a cylinder capacity of exceeding 3,000. .
30 08703.31 Other vehicles with compression-
ignition internal combustion piston engine (diesel ore semi-diesel) . Of a cylinder capacity not exceeding 1,500 cc
30 08703.33 Other vehicles with compression-
ignition internal combustion piston engine (diesel ore semi-diesel) . Of a cylinder exceeding 2,500 cc
30 08703.90 Others 30 08704.21 Motor vehicles for the transport of
goods. Other, with compression-ignition internal combustion piston engine (diesel and semi-diesel) g.v.w. not exceeding 5 t
30 08704.22 Other, with compression-ignition
internal combustion piston engine (diesel and semi-diesel) g.v.w. exceeding 5 t but not exceeding 20t 30 0
8704.23 Other, with compression-ignition internal combustion piston engine (diesel and semi-diesel) g.v.w. exceeding 20t 3 & 20 0
6
8704.90 Other: Completely Built-up ( CBU)/Other : g.v.w. not exceeding 5 t 30 0
8706 Chasis fitted with engines, for the motor vehicles 10 0
8707 Bodies (including cabs) for the motor vehicles 15 & 20 0
8708.10 Bumpers and parts thereof 10 08708.29 Other : Components of door trim
assembly 3,15 & 20 08708.31 Mounted brake linings 10 08708.40 Gear boxes, not fully assembled
and assembled. 3,10 & 30 08708.50 Drive-axles with differential,
whether or not provided with other transmissions components, not fully assembled and assembled 3 0
8708.60 Non driving axles and parts thereof, not fully assembled and assembled 10 0
8708.70 Wheel centre discs, center caps whether or not incorporating logos 3 & 10 0
8708.80 Suspension shock-absorbers 10 & 20 08708.91 Radiators 10,20 & 30 08708.92 Silencers and exhaust pipes 10 08708.93 Clutches and parts thereof 10 08708.94 Steering wheels, steering columns
and steering boxes 10 & 20 08708.99 Unassembled fuel tanks; engine
brackets; parts and accessories of radiators; aluminum radiator core, single row. 1,3,10,15 & 20 0
8711.30 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars. With reciprocating internal combustion piston engine of a cylinder capacity exceeding 250cc but not exceeding 500cc 30 0
8711.40 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 500cc but not exceeding 800cc 30 0
8711.50 With reciprocating internal combustion piston engine of a cylinder capacity exceeding 800cc 30 0
8711.90 Other cycles fitted with an auxiliary motor with or without side cars 30 0
8714.19 Other parts of motorcycles 3,10 & 15 0
7
8714.91 Frames and forks, and parts thereof 15 0
8714.92 Wheels rims and spokes 15 08714.93 Hubs, other than coaster braking
hubs and hub brakes, and free-wheel sprocket-wheels 3 0
8714.94 Brakes, including coaster braking hubs and hub brakes, and parts thereof 3 0
8714.95 Saddles 3 08714.96 Pedals and crank-gear and parts
thereof 3 0Source : Tariff Commission
Value Added Tax (VAT) :
Philippine’s Value-Added Tax is 12%.
Import Regulation and Procedure
The following parts and accessories of motor vehicles should require “import permit” from The Bureau of Import Services, Department of Trade and Industry before importation :
a. dashboardsb. doorsc. fendersd. floor boardse. grillef. hoodg. luggage compartmentsh. luggage racks (exterior)i. plate bracketsj. running boardsk. radiator cowlingsl. trunk/trunk lidsm. visorsn. wingso. mudguardsp. floor mats (other than of textile material/rubber)q. Bodies (including cabs and body shell), for the motor vehiclesr. Chassis fitted with engines, for the motor vehicles
However, other parts and accessories of motor vehicles are liberalized and that the following import procedures are being implemented :
a. The importer shall apply for the L/C with opening Bank. The L/C application shall state the type, quality, quantity, unit price and total value, freight charges, country of supply and PSCC/Tariff Code number of the goods.
b. Prior to issuance of the L/C, the importer shall compete the Import Entry Declaration (IED), stating the tariff heading (HS Code), import
8
duty charges due on the shipment, the importer’s Tax Identification Number (TIN), and all other information as required by the Bureau of Customs and/or Commercial Bank, and shall pay the estimated advance customs duties due to the Opening Bank.
c. The Opening Bank shall checkwrite/validate the IED on the advance duties collected. The Opening Bank prepares copies of the following documents:
- all copies of the L/C- Seller’s pro-forma invoice- The Import Entry Declaration
d. The importer/importer’s broker will prepare electronically or by regular procedures the import entry with the additional duties and taxes due, if any. The importer will then file their customs entry declaration with the Bureau of Customs either through electronic means as per Philippine regulations or via regular manual processing. If by regular manual processing, the normal documents required for clearance.
e. The Bureau of Customs shall verify the documents and calculate the difference between the deposit paid and duties due as well as the compensating /advance sales tax due. The importer shall prepare the import entry and internal revenue declaration (IEIRD) for final payment of balance of duties and taxes due.
f. The importer shall present the IEIRD to the opening bank and pay the balance of the duties and taxes due.
g. The opening bank shall accept the payment for the balance of duties and taxes due and issue to the importer the machine-validated IEIRD
h. The importer/importer’s broker shall present to the Bureau of Customs the documents required for clearance or alternatively can be submitted by the acceptable electronic means in accordance with the Philippine rules and regulations. The Bureau of Customs shall issue the delivery permit for the release of the goods.
Comments/ Recommendations :
The Philippine’s local automotive parts makers are asking for more government support such as incentives similar to those given by the respective governments of their ASEAN counterparts. The part makers said they are pinning their hopes on a Philippine Utility Vehicle (PhUV) program to increase sales volume through the localization of assemblers. The Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP) said the industry supports some 28,000 workers.
The Philippines’ total auto parts and components maker, from 256 in 1996, has dwindled to 173 in 2007. The MVPMAP, one of the two organizations of auto parts makers, analyzes the diminishing role of local auto parts makers. It explains that most parts for completely knocked down vehicles (CKDs) now comes with a package kit abroad, rendering local content from local parts manufacturers unnecessary. The sales of completely built-up vehicles (CBUs) are on the rise.
The increasing independence of CKDs from local parts manufacturers and the rising sales of CBUs are now forcing local auto parts manufacturers to venture into largely new territory just to survive.
9
It’s quite clear that MVPMAP is working on locally utility vehicle with 60% total local content in cooperation with the Chamber of Automotive Manufacturers of the Philippines , Inc. (CAMPI), Truck Manufacturers Association and Board of Investments. This development was ascertained created a working group called the Philippine Automotive Industry Development.
Meanwhile, the local parts makers have urged for the revival of People’s Car Program to perk-up the sluggish domestic industry with the assembly of brand new but affordable vehicles using locally produced auto components as they worried on the impact of the increasing inflow of completely built-up brand new imported vehicles. The proposed Version 2 of the People’s Car Program would require existing local car assemblers to produce cars with high level of local content but with a price of a second-hand car.
The government must have a vision of where it wants the local vision of where it wants the local auto industry to be 10 to 20 years from now. There has to be a joint development of lower entry vehicles from the assemblers’ principals abroad. We need to focus on the development and production of vehicles affordable to Filipinos.
Likewise, there is a move to ban the importation of second-hand cars which will surely affect the automotive industry.
The automotive Industry embarks on a new journey with the government and all industry members to renew energies and explore rare opportunities to bring to the Philippine Automotive industry back to its track. Meanwhile, the following measures should be implemented :
1. Government to strongly demonstrate serious commitment to promote trade and investments over the next 3 years;
2. Government to act fast to position the country as the hub for regional clusters by promoting the Philippines to be the preferred production platform for export of countries covered now by the FTA’s as well as developed new exports by tapping new markets from other countries;
3. Government to proactively foster regional collaborative efforts to develop linkages with its neighbors such as complementation in tax policies, tariffs, labor incentives, regulatory frameworks in customs and trade and harmonized standards;
4. Automotive industry to spearhead new regime of expertise in skills, technology and engineering, launch major skills enhancement programs covering vocational skills, technical competency, as well as computers and language proficiencies. Skilled labor and technology competent personnel are key to transforming our economy to an innovation driven economy.
5. Automotive Industry to drive result oriented performance to world class competitiveness by industry wide quality and productivity independence to be able to persuade the principals and the foreign investors towards advancing industry growth and development.
6. Government and industry to push for the improvement of yearly production of new vehicles with high local content to 500,000 units, for a yearly turnover to exceed Php 1.0 trillion; to add employment of 150,000 in assembly and parts manufacturing; and 50,000 more in automotive ancillary industries; and for taxes and duties to increase more than Php 50 Billion.
10
Philippine domestic market will soon be energized by daring policy reforms of Department of Trade and Industry and Board of Investments that will pave way for the institution of a revised and relevant New Motor Vehicle Development Program. A new Roadmap is in the offing and essential comprehensive competitiveness measures will be put in place to ensure anew a hold to the promised future for the Automotive industry.
A strong partnership between government and private sector for synergy in program implementation will be crucial.
11
PHILIPPINE MANUFACTURERS OF AUTOMOBILE :
1. HONDA PHILIPPINES, INC.Laguna Technopark, Sta. RosaLaguna, PhilippinesTel : (632) 8577200Fax : (632) 8577221Website : www.hondaphil.comMain Products : Honda Cars and CRVContact Persons : MR. HIROSHI SHIMIZU
President MR. ALFREDO MAGPAYO SVP-Administration Division
2. TOYOTA MOTOR PHILIPPINES CORP.Special Toyota Economic Zone,Sta. Rosa-Tagaytay Road, Sta. Rosa City, PhilippinesTel : (632) 8258888Fax : (632) 8431163Email: [email protected] : www.toyota.com.phMain Products : Toyota Cars and AUVs, LCVsContact Persons : MR. HIROSHI ITO
President MR. ROMMEL GUTIERREZ Senior Vice-President
3. UNIVERSAL MOTORS CORPORATION2232 Don Chino Roces Avenue, Makati CityPhilippinesTel.: (632) 8100151 ; 7502451Fax : (632) 8404701Website : www.mynissan.comE-mail : [email protected] Products : Navara, Buses, Patrol, Frontier and UrvanContact Persons : MR. RICHARD LEE
President MS. ELIZBETH LEE Executive Vice-President /Marketing and Sales
12
4. MITSUBISHI MOTORS PHILIPPINES CORPORATIONOrtigas Avenue Extension, Cainta, Rizal, PhilippinesTel.: (632) 6580101 to 16Fax : (632) 6580006Website : www.mitsubishi-motors.com.phMain Products : Mitsubishi Cars, LCVs, Trucks and BusesContact Persons : MR. MASAHIKO UEKI
President MR. MELCHOR R. DIZON Senior Vice President
5. COLUMBIAN AUTOCAR CORPORATION/ASIAN CARMAKERS CORPORATIONKm. 16, West Service Road, South SuperhighwayParanaque City, PhilippinesTel.: (632) 8231540 ; 8232331Fax : (632) 8236361Website : www.kia.com.ph; www.bmw.com.phEmail : [email protected] Products : Kia, Pregio, BMW CarsContact Persons : MR. JOSE ALVAREZ
President MS. VIRGINIA P. NUEVO Vice-President
6. SCANDINAVIAN MOTORS CORPORATION 2272 Pasong Tamo Ext., Makati City, Philippines Tel.: (632) 8936621
Fax : (632) 8941059Website : www.volvocars.comE-mail : [email protected] Products : Volvo CarsContact Persons : MR. ALBERT ARCILLA
President MR. DAVE ZABALLERO Vice-President
7. NISSAN MOTOR PHILIPPINES, INC.Nissan Techno Park Barangay, Pulong Sta. CruzSta. Rosa, Laguna, PhilippinesTel.: (6349) 5412201-42Fax : (6349) 5412240-42Website : www.nissan.com.phE-mail : [email protected] Products : Nissan Cars, LCVsContact Persons : MR. CHEN CHUN
President MR. VALENTINO DE LEON Vice-President- Administration and Corporate Planning
13
8. ISUZU PHILIPPINES CORPORATION 114 Technology Avenue, Technopark,
Biñan, Laguna, PhilippinesTel : (632) 8420577Fax : (632) 8420202Website : www.isuzuphil.comMain Products : Isuzu LCVs, AUVs, TrucksContact Persons : MR. KEIJI TAKEDA
President MR. ERIC TALAG Manager
14
15
NUMBER OF MOTOR VEHICLES REGISTERED BY CLASSIFICATION & MODE OF REGISTRATION
Comparative, ANNUAL, 2006; 2007; 2008
Date of Preparation: 03 February 2009
MV ClassificationMODE OF
REG. 2006 2007 2008* %INC.'06/'05 %INC.'07/'06 AVE.% INC.
PRIVATE NEW 752,161 834,068 884,376 10.89 6.03 8.46
RENEWAL 3,610,425 3,724,659 4,023,956 3.16 8.04 5.60
Sub-Total 4,362,586 4,558,727 4,908,332 4.50 7.67 6.08
GOVERNMENT NEW 6,200 4,658 6,553 (24.87) 40.68 7.91
RENEWAL 69,603 65,870 66,754 (5.36) 1.34 (2.01)
Sub-Total 75,803 70,528 73,307 (6.96) 3.94 (1.51)
DIPLOMATIC NEW 25 140 0.00
RENEWAL 2,227 2,381 4,744 6.92 99.24 53.08
Sub-Total 2,227 2,406 4,884 8.04 102.99 55.52
FOR HIRE NEW 23,009 20,517 23,471 (10.83) 14.40 1.78
RENEWAL 863,969 866,506 875,740 0.29 1.07 0.68
Sub-Total 886,978 887,023 899,211 0.01 1.37 0.69
TAX-EXEMPT NEW 371 270 410 (27.22) 51.85 12.31
RENEWAL 3609 11098 5128 207.51 (53.79) 76.86
Sub-Total 3980 11368 5538 185.63 (51.28) 67.17
T O T A L NEW 781,741 859,538 914,950 9.95 6.45 8.20
RENEWAL 4,549,833 4,670,514 4,976,322 2.65 6.55 4.60
GRAND TOTAL 5,331,574 5,530,052 5,891,272 3.72 6.53 5.13
16
*Excluding the reports of Iloilo D.O. & Kalibo D.O. (Reg. VI-June-July 2008)
1. Brand-New MVs assembled by LTO-Accredited Assemblers/ Manufacturers;
2. Locally-Rebuilt MVs registered for the 1st time;
3. Imported Chop-Chop registered for the 1st time;
4. Brand-New Imported CBUs & Used-Imported MVs registered for the 1st time in the Phils.
Report as of January 14, 2010.
17
