CAMPI CELEBRATES AND REDEFINES THE PHILIPPINE AUTOMOTIVE INDUSTRY’S EVOLUTION
This weekend, seventeen car companies are presenting a spectacular show at the World Trade Center to redefine, as well as celebrate the Philippine auto industry’s evolution.
The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), which has been organizing the biennial Philippine International Motor Show (PIMS) since 2007, chose the last weekend of October to stage the PIMS in sync with the Christmas shopping season’s advent.
Automotive sector sales, after all, help drive economic growth, and what better way to promote sales than by showcasing for four consecutive days the newest vehicles with their cutting-edge tech, latest stylish designs and advanced safety features?
In an online interview, CAMPI president Rommel Gutierrez, who is concurrently first vice president of Toyota Motor Philippines Corporation, said that 468,300 units is still the projected sales target for 2024, and based on the robust growth in vehicle sales this year, achieving the industry’s dream goal – the 500,000-unit mark – “is increasingly attainable.”
“Reaching 344,843 units by September suggests strong market demand, and with the upcoming holiday season, it is likely that sales could surge further, inching closer to our 500-unit goal,” Gutierrez said.
In this context, the key words at the 9th PIMS are “shaping the future of transportation in the country” and “innovation” plus “sustainable, advanced and inclusive mobility.” Confidence in the industry climbed to an all-time high when sales bounced back after the Covid-19 pandemic lockdowns dampened market activities. And the post-pandemic influx into the market of many new car brands, albeit from China, further contributes to market growth.
Increase in local manufacturing
It’s not only market growth, but also an increase in local manufacturing. At the PIMS press conference last August, Gutierrez enthused about the increase in local manufacturing. Asked online for further details, he replied: “The increase in local manufacturing is attributed to brands like Toyota, Mitsubishi, and Isuzu, which continue to expand and strengthen the capacity in their assembly and production facilities here in the country.
“Toyota, for instance, has ramped up production operations at its Sta. Rosa plant for models like the Vios. Mitsubishi also continues assembly operations in Sta. Rosa, while Isuzu has maintained strong production in Laguna. The trend aligns with the government’s push for investments in local manufacturing and the Comprehensive Automotive Resurgence Strategy (CARS) program.”
In addition, Gutierrez said: “Toyota will be introducing its third CKD model in the coming months… the iconic Tamaraw, which will be made available to the public soon.”
CKD assembly vs. local manufacturing
Since he had mentioned the Tamaraw as Toyota’s third CKD model, the question arose as to what he meant by “local manufacturing.” Did it mean only the assembly of imported Completely Knocked Down (CKD) kits or Semi Knocked Down (SKD) kits? Or did it mean a full manufacturing process starting with locally sourced materials and parts?
Gutierrez replied: “Local manufacturing in the Philippine context typically refers to CKD assembly, where vehicle components are imported and assembled locally. Full manufacturing, starting from locally sourced materials, is not widely implemented yet, although the industry is working towards increasing this in the long term.”
At present, as Gutierrez admitted, imported vehicles (CBUs, or Completely Built Units) still outnumber the locally assembled vehicles. “Many CAMPI members import models due to more efficient production capacity abroad or specific consumer demand for international models that are not yet produced locally,” he explained.
Experience the future of mobility
The 9th PIMS press release issued by CAMPI declares that “attendees can expect to experience firsthand the future of mobility, from electric vehicles to intelligent driving systems and beyond.” So, the question came up if that meant a fully autonomous, self-driving vehicle like a Tesla would be exhibited.
Gutierrez answered: “PIMS aims to showcase advanced driving technologies, including intelligent driving systems such as advanced driving aids and safety features, but fully autonomous or self-driving vehicles may not yet be featured as the technology for full autonomy is still in its development phase globally.”
Infrastructure for EVs
Meanwhile, several industry players are involved in expanding the infrastructure for electric vehicles, Gutierrez said. “Leading car manufacturers like Nissan and Mitsubishi, in collaboration with energy companies such as Meralco and Shell, are working to install more public EV charging stations to support the growing demand for EVs. Ayala’s AC Mobility, in particular, and not just BYD, is pushing for better EV infrastructure, which is key to improving EV adoption in the country.”
Inclusive mobility for all Filipinos
Since the 9th PIMS is described as “redefining advanced, inclusive mobility for all Filipinos,” the question arose whether the industry is helping to improve the public transportation system, which is part of redefining inclusive mobility for all Filipinos, including those who cannot afford to buy or maintain a car. How is CAMPI helping to implement the Public Utility Vehicle Modernization Program (PUVMP)?
“Inclusive mobility goes beyond private car ownership and extends to improving public transportation,” Gutierrez agreed. “CAMPI supports the PUVMP through partnership with local assemblers to build modern, eco-friendly jeepneys and buses that comply with the new standards. CAMPI members such as Mitsubishi, Isuzu and Columbian Manufacturing Corporation ( the exclusive importer, assembler and distributor of the Daewoo bus brand) provide locally assembled PUVs, helping transition the public transport sector into more efficient, environmentally sustainable options, thus contributing to a more inclusive mobility system for all Filipinos.”
Cooperatives and PUV modernization