The Department of Trade and Industry (DTI) will prioritize local assemblers for the manufacturing subprogram under the public-utility vehicle (PUV) modernization program of the transportation department.
“If we’re going to give incentives, we’ll make sure it’s for those that are built here. We can’t give incentives to CBUs [completely built units]. We’re promoting local bodybuilders, then allow different platforms to be used,” Trade Secretary Ramon M. Lopez said during the first Philippine Auto Parts Expo (Philapex) on Thursday.
Lopez clarified that even as the guidelines have yet to be the finalized, the incentive framework for their eco-PUV program will likely be geared toward local bodybuilders.
Given the program’s intent to spur local assembly, parts makers and bodybuilders are on discussions to allow CBUs to participate in the program, even without incentives.
“These type of prototypes take about 1,000 man-hours to make. [The government asks] why there aren’t jobs, but then they’re opening the program to imported buses,” Hino Manufacturing Corp. Chairman Vicente T. Mills lamented.
“We’re just saying give the local makers an advantage,” he said.
Hino released its prototype offerings to Class 2 and 3 of the PUV modernization program during the first Philapex. These types have a price cap directed by the trade department’s Bureau of Product Standards.
The program’s bodybuilder participants include Centro Manufacturing Corp., Almazora Motors Corp., Del Monte Motors, Hino Motors Philippines Corp. and Santa Rosa Motorworks Inc.
Platform suppliers include Isuzu, Toyota, Hyundai, Tata, PhUV Inc., IKK Ichigan Inc., Mitsubishi Motors Philippines Corp. Fuso and Foton Motors Philippines.
These suppliers will not be offered incentives, as they will be producing existing and generic parts for the modern jeepneys, such as the power train, chassis and engines.
Ferdinand I. Raquelsantos, Philippine Parts Makers Association president, announced some 500 units of these Filipino-made PUVs under different platform brands will already be released before the official eco-PUV program start in July 2018.
Hino will produce 20 to 30 of the initial 150 units being eyed for release by December.
“By year-end, we’ll have 150 units in select routes, with an additional 300 units in the first quarter of next year. Roughly some 500 units before the program starts,” he said.
The Department of Transportation is setting the replacement unit count for all these manufacturers at 200,000 to be replaced within a six-year period.
Platform-supplier participants will compete among themselves to sell to transport cooperatives and operators for a share of this initial 200,000 units.
A ready market is incentive enough for these firms as the Land Transport Franchise Regulatory Board may move to disapprove new franchise of operators if their units are not the upgraded PUV-type.