Worsening Traffic Condition to Hamper Growth of Auto Industry – Sen. Bam

Senator Bam Aquino warned that worsening traffic conditions would hinder the growth of the country’s automobile industry.
“Aside from economic losses amounting to billions of pesos a day, our booming auto industry will also take a huge hit due to our traffic problems,” said Aquino.
To address this and other issues hounding our car industry, Aquino has filed Senate Resolution No. 929 seeking an inquiry to ensure that the automotive industry roadmap is consistent with and integrated into other existing government policies and plans.
“Given the local demand for automobiles and the worsening road condition and congestion, there is a need to ensure that the automotive industry roadmap is aligned with the country’s infrastructure roadmap,” said Aquino.
Earlier, the Board of Investments (BOI), the Philippine Automotive Competitiveness Council Inc. and relevant government agencies have been tasked to formulate development roadmap for the auto industry to ensure its viability and competitiveness.
Aquino, chairman of the Senate Committee on Trade, Commerce and Entrepreneurship, stressed that a clear direction is crucial for the auto industry with the 2015 ASEAN Economic Integration fast approaching.
“I believe that the Philippine Motoring Industry can be at the forefront and be the driver of this movement, with our capability to develop world-class products that are globally competitive and backed by a culture of quality and excellence,” the senator said.
Presently, Aquino said the auto industry is one of the country’s key economic drivers, accounting for 12 percent of the total manufacturing sector output and about four percent to the total GDP of the country.
In addition, the auto industry directly employed 60,000 workers and indirectly hired 500,000 more.
“Total investments have reached P120B and the industry has remitted P30B annually to the government in the form of taxes and other duties,” the senator said.
Aquino said the local auto industry has grown rapidly in the past three years. In 2013, it has breached the 200,000 unit sales mark with 212,414 units sold while 250,000 cars are expected to be sold this year.
However, locally assembled vehicles presently account for only 32 percent of the supply while competitiveness of the country’s auto parts companies is weak compared to other countries in Asia.
“The government should further develop and improve strategic programs to reduce the cost of doing business by cutting red tape, which ultimately benefits consumers,” Aquino said.
The lawmaker added that the roadmap should also encourage the entry of electric vehicles and it should be integrated in the long-term plans for the country’s environmental protection and preservation.
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