It should be seen as a good news – for the first half of 2008, the Chamber of Automotive Manufacturers of the Philippines (CAM-PI) noted the continuing growth in sales of new vehicles in the country, to nearly 14% compared to 2007 figures to reach 61,654 units, despite the fuel price increase of up to 50%, also compared to 2007 figures. Due to the robust sales, by end-2008, in fact, CAMPI is expecting to sell 125,500 units, up from last year's record 117,903 units.

However, “it is a common misconception that because there are more vehicles on the road, then automotive related businesses are doing well,” says Pia Borromeo-Mirasol, internal vice president of the Manufacturers Association of the Philippines (MVPMAP), the organization of local auto parts makers. “It is a very sad fact that most of the vehicles you see on our streets are entirely imported (whether brand new or surplus or converted), or, if assembled in the Philippines, they contain very few Philippine made parts.”

The lack in the market of a “truly Filipino” vehicle prompted MVPMAP to “conceptualize, design, fabricate and assemble, through a technical working group, the Pinoy car. We decided that we would build a Filipino vehicle: for Pinoys by Pinoys,” Borromeo-Mirasol says.
And so enters the picture the Philippine Utility Vehicle or PhUV, otherwise known as the Pinoy car.

Long In Coming
According to the MVPMAP, of the 97,067 units sold by CAMPI members by end-2005, 57,700 were completely knocked down (CKD) kits, while 39,500 were completely built units (CBUs or ready-for-sale, in fact growing in number by 481.7% in the last seven years, from 1998 figures pegged at only 8,200 to 2005’s 39,500 units). But, interestingly, while sales of these units are increasing, the “industry is relying less on local labor, as well as in acquiring locally made parts,” Borromeo-Mirasol says.

In fact, MVPMAP notes that “through the years, we have witnessed the steady decline of local auto parts manufacturers, so that, currently, most of what is left of MVPMAP’s membership is operating at only 40% of their rated plant capacities,” Borromeo-Mirasol says.
Noting that about 45,000 workers are dependent on the local parts industry and its support industries, MVPMAP, thus, saw the need to find a way to help in reviving the industry.

Producing the people’s car, the PhUV, “may be the local auto parts manufacturers’ last hope for survival, as it proves that the Filipino can design and assemble a truly Pinoy vehicle,” Borromeo-Mirasol says. “We believe it can be the much-needed catalyst to revive our ailing local auto parts industry.”

All Pinoy
The PhUV is a “top-of-the-line product,” with such features as built-in side and rear stepboards, that are also hidden by the door, for easy ingress and egress; leveled front and rear floors to provide ample leg room and comfortable seating, especially to the rear seat passengers; and additional cargo space without having to remove the rear seats. To promote environmentalism, too, the PhUV’s diesel engine is Euro 1 compliant, and can run on bio-diesel; while its gasoline engine can run on LPG or ethanol-gasoline mixture.

“We called it ‘Ang tunay na sasakyang Pinoy (The real Filipino vehicle),’” Borromeo-Mirasol says. “Gawa ng Pinoy para sa Pinoy (Made by Filipinos for Filipinos).”

The PhUV sells from P350,000 to P400,000, about the price range of a used vehicle available via the Subic Freeport, and is specifically aimed at entrepreneurs and overseas Filipino workers (OFWs) who have businesses in the country. Hopefully, instead of buying used imported vehicles, they will opt to buy a brand new PhUV instead.

As MVPMAP looks to selling around 30,000 PhUVs per year, it remains positive for the Filipino car. After all, it wanted to come up with an inspiration, “a rallying point for local auto parts manufacturers not to lose heart in the face of what seems to be insurmountable difficulties ahead. With the PhUV, we did that,” Borromeo-Mirasol says.

And so comes the Pinoy car.