Philippine president invites investment from India Auto Inc

Rodrigo Duterte, the president of the Philippines, in his recent meeting with Indian prime minister Narendra Modi, has invited the Indian automotive industry and also pharmaceutical companies to invest and set up manufacturing operations.

According to official government data, automobile sales in the Philippines saw a growth of 177.31 percent from 97,063 units in 2005 (CKD: 58,566 and CBU: 38,497) to 269,164 units (CKD: 86,218 and CBU: 182,946) in 2014. Incidentally, the percentage of CKD and CBU sales changed sharply over a decade; in 2004, the country had a ratio of 60:40 CKD / CBU, which in 2014 was 32:68.

The Chamber of Automotive Manufacturers of the Philippines in its yearly data pegged the domestic industry sales growth at 24.6 percent, consisting of 133,188 units of passenger vehicles (14.4%), and commercial vehicles 226,384 (31.4%) in 2016. The market’s top performers last year were Toyota Philippines (44.14%), Mitsubishi Motor Philippines (17.08%), Ford Motor (9.37%) followed by Izusu Philippines (7.61%) and Honda Cars Philippines (6.45%).

The Philippine government is bullish on growth of the domestic automotive industry. According to Phase-I of its priority index for industries, it lists automotive and auto parts – cars, Eco PUV program (alternative energy vehicles) as one of the key sectors to drive the country’s economic growth.

The Philippines also has an ambitious plan to promote usage of EVs and it aims to replace 200,000 PUVs with a big thrust on localisation. It also mentions key incentives in its push towards sustainable mobility that includes zero tariff on EV components, parts and accessories for assembly of hybrid, electric, flexible fuel and CNG motor vehicles.  

At the bilateral talks held on November 13 at the Philippine International Convention Center (PICC) in Pasay City, Duterte mentioned the police at PICC use Mahindra vehicles.

Although the Indian SUV major Mahindra & Mahindra (M&M) has a presence in Philippines (PH) since 1990, it was only in 2015 the brand got a boost with an order from Philippine National Police or PNP to supply 1,470 units of its Enforcer – specially configured Bolero pick-up (one of the largest orders from the country). M&M appointed Asiabrands Motors Corporation as its exclusive distributor that also distributes several other brands such as Kia, BMW, and Peugeot. Interestingly, Mahindra's other offerings are also being used by the government offices.