MANILA, Philippines - The local unit of Japanese firm Nissan
Motor Co. Ltd. is conducting a study on the assembly of a new vehicle
model in the Philippines following the release of the Comprehensive
Automotive Resurgence Strategy (CARS) Program.
“With the CARS Program coming out... we are going through that study phase and if it comes out beneficial to build new models in the Philippines, then investment will not be an issue,” Nissan Philippines Inc. (NPI) president and managing director Antonio Zara told reporters at the launch of the NV350 Urvan yesterday.
The 200,000 volume of production requirement over a period of six years under the CARS Program, however, will be difficult for the company to meet.
“For a brand like Nissan, we will have to consider not just domestic demand. We will have to consider export,” Zara said.
He noted exports would still be a challenge for the company given Nissan’s strong manufacturing operations in markets like Thailand and Indonesia.
“It will be challenging for us to compete in economies of scale with those countries...We have to define our niche,” he said.
Executive Order 182 or the CARS Program approved by President Aquino on May 29, seeks to support the assembly of three vehicle models by providing incentives in the form of tax payment certificates to firms which meet investment and production volume requirements.
NPI’s Almera and Patrol Safari are currently assembled locally.
While the previous generation of the Urvan was also produced in the country, the company decided to shift to imports from Japan for the new generation to provide the best value to customers.
With the Japan-Philippines Economic Partnership Agreement in place, the company can import the Urvan from Japan at zero tariff, removing the duty differential which reached around 40 percent earlier.
As the Urvan is the most popular nameplate for NPI, holding the second biggest share or 36.7 percent of the local van market, Zara said the aim of the company is to maintain if not further grow its share for the latest generation.
The new Urvan which is suitable for family use and public transport features an upgraded engine, improved air-conditioning and redesigned interior space for passenger ride comfort.
The van which will be available starting June 15, has the following configurations and pricing: 15-seater (P1.183 million); 18-seater (P1.196 million) and three-seater cargo (P1.177 million).
Those using the new Urvan as a registered public utility vehicle will get to enjoy three-year manufacturer’s warranty at no additional cost.
Read more on The Philippine Star.
“With the CARS Program coming out... we are going through that study phase and if it comes out beneficial to build new models in the Philippines, then investment will not be an issue,” Nissan Philippines Inc. (NPI) president and managing director Antonio Zara told reporters at the launch of the NV350 Urvan yesterday.
The 200,000 volume of production requirement over a period of six years under the CARS Program, however, will be difficult for the company to meet.
“For a brand like Nissan, we will have to consider not just domestic demand. We will have to consider export,” Zara said.
He noted exports would still be a challenge for the company given Nissan’s strong manufacturing operations in markets like Thailand and Indonesia.
“It will be challenging for us to compete in economies of scale with those countries...We have to define our niche,” he said.
Executive Order 182 or the CARS Program approved by President Aquino on May 29, seeks to support the assembly of three vehicle models by providing incentives in the form of tax payment certificates to firms which meet investment and production volume requirements.
NPI’s Almera and Patrol Safari are currently assembled locally.
While the previous generation of the Urvan was also produced in the country, the company decided to shift to imports from Japan for the new generation to provide the best value to customers.
With the Japan-Philippines Economic Partnership Agreement in place, the company can import the Urvan from Japan at zero tariff, removing the duty differential which reached around 40 percent earlier.
As the Urvan is the most popular nameplate for NPI, holding the second biggest share or 36.7 percent of the local van market, Zara said the aim of the company is to maintain if not further grow its share for the latest generation.
The new Urvan which is suitable for family use and public transport features an upgraded engine, improved air-conditioning and redesigned interior space for passenger ride comfort.
The van which will be available starting June 15, has the following configurations and pricing: 15-seater (P1.183 million); 18-seater (P1.196 million) and three-seater cargo (P1.177 million).
Those using the new Urvan as a registered public utility vehicle will get to enjoy three-year manufacturer’s warranty at no additional cost.
Read more on The Philippine Star.