In order to make it a lot easier to substantiate grant of incentives to investors, most recently, the technical working team of the auto industry roadmap has ramshackle both construction and sales estimations of the industry into low, average, and high.
In one of its recent statements, the President of the TWG (Truck Manufacturers Association), Vicente Mills Jr., mentioned that the association has conducted its very first conference to modify the projected auto industry roadmap. He added that, the industry estimations should be very clear so that it would be very simple, when the government agencies assess a new venture for incentive purposes.
Gregory L. Domingo, the Trade and Industry Chief Secretary, was clearly dissatisfied by the recent roadmap that had been delivered to him from the industry, where the DTI head expressed his opposition over the permit of generic spurs, and requested the group to formulate something that would actually sparkle the business to validate the incentives that has been formerly suggested.
Domingo is also the lead of the BOI (Board of Investments), and he quoted the fruitful programs of Thailand with its latest 1-ton truck plan, Indonesia’s MPV and Malaysia’s Proton. On the other hand, the DTI head has been enforcing the industry to come out with a successful exports program, mentioning that it is the final analysis of their competitiveness.
After realizing, what is there in the Domingo’s mind, and also comprehending his viewpoint, TWG is expected to formulate a new roadmap that would precisely match his focus. The present planned automotive roadmap has determined production and sales targets only by 2022. As the only quantity exporter of CBU packets, the US based Ford Motors, has decided to dump its well-known Laguna construction operations sometime in 2012 December in support of Thailand, the export estimation has to be completely altered now.
The TWG President said that they are still to attain the incentives part; however the BOI group was plainly open about any proposal from the industry for an excise-duty incentive derived from the local content. The automotive industry has time till 30th August 2012 to settle the roadmap estimation to meet the deadline of BOI for the surrender of all production division roadmaps.
The PIDS, which usually operates as the coordinator, is also provided with the same 30th August to mid-September 2012 deadline to formulate an outline for the production division. By 2022, local vehicle construction is anticipated to strike 534,400 units score, and 350,000 units of local CKD overall sales, while exports is more likely to double to around 184,000 unit, and automotive parts exports rising up to $7 billion.