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Wednesday, October 26, 2016

3 MAJOR CAR COMPANIES, EYING EXPANSION IN THE PHILS






Hyundai will put up their first assembly plant in the PH

ONE of the largest automaker Hyundai Motor Co in South Korea will have their first assembly plant in the Philippines.

 Hyundai Asia Resources Inc. (HARI), the exclusive distributor of Hyundai Motor Co already submitted an application to the Philippine government to knock down their assembly plant in the country.




They will put up the said plant in Santa Rosa, Laguna wherein, this will be the final assembly plant of the company.

The company will export auto parts from foreign countries and they will assemble the final vehicle in the said plant. The facility will mainly assemble the Eon model where it's very popular among consumers in India and Philippines.

Hyundai also hoping that Eon will become a bestseller in other ASEAN countries just like what happened in India.








They are aiming to sell 35,000 vehicles in the Philippines this year. Aside from that, they aim to raise their shares in the market to more than 10 percent in 2020.

Hyundai Motor Co will be subjected to tariff exemption when they exported their vehicles to other ASEAN countries. This is in connection to the recent launching of Association of Southeast Asian Nations (ASEAN) Economic Community that will allow the auto company to have discounted taxes.

As of now, the said automaker currently has their assembly lines in Vietnam, Indonesia, and Malaysia. In 2018, their second plant in Vietnam will start operating.





VOLKSWAGEN

Philippines auto industry boomed this year. That's why a lot of firms wants to invest in the country. Aside from Hyundai, there are some companies want to put up their assembly plants in the Philippines.






One of them is the Volkswagen. The Volkswagen is planning to invest $200 million for their expansion in the country. 

According to President and CEO of Volkswagen Philippines (VW) John Orbeta, they want to put up their car manufacturing facility here.

But they have a problem with the tax policy in the country. Orbeta said, once the government will fix some of the issues in the taxes there will be a possibility that they will move forward with their plans.

GAC MOTOR

The China’s Guangzhou Automobile Group Co., Ltd. (GAC Motor) is also want to invest in the Philippines because of the potential of the local market. They think that investing in the Philippines is beneficial for them especially this year there is 27.6% growth in the auto industry in the country according to Chamber of Automotive Manufacturers of the Philippines.





As of now, GAC is looking for local Filipino partners with future plans to assemble cars in the Philippines to export to ASEAN by 2017.

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