The Philippine government plans to offer additional incentives to encourage investment in vehicle production. Board of Investment (BOI) executive director, Efren Leano, said “we want to make the Philippines a more attractive investment destination for automobile production”.
Go deeper with GlobalData
The move comes after Ford Motor Philippines, the country’s only automobile exporter, decided earlier this year to relocate right hand drive Focus production for the ASEAN region to Thailand. The Philippine domestic vehicle market is less than a quarter of the size of the domestic markets of Thailand and Indonesia. It is also a left hand drive market, which makes it harder to export to other markets in the region.
Among the measures being considered are investment-related tax credits and incentives for small car production, although other countries in the region also offer attractive packages. At present, the Philippine government offers incentives to vehicle manufacturers if they export over 70% of total output. This may also be reduced to 50%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
