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Friday, March 29, 2024

Hyundai eyes Eon production under Cars scheme

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Hyundai Asia Resources Inc. submitted an application to participate in the Comprehensive Automotive Resurgence Strategy scheme, with sub-compact car Eon as its entry model in the program.

Industry sources said the local distributor of Korean brand Hyundai filed the application to join the Cars program last week. 

Sources said Eon units would be assembled by Star Motor Manufacturing Corp. in its facility in Sta. Rosa City, Laguna. Currently, Star Motors assemble Nissan Patrol in the Sta. Rosa facility.

The Board of Investments said the application would undergo review to assess the company’s capacity to produce 200,000 units and provide the necessary investments needed to sustain local production.

Hyundai sold 11,207 passenger cars in the first half, including 10,000 sub-compact cars.

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Under the Cars program, the automotive sector targets to generate 200,000 new jobs, bring in fresh investments worth $1.2 billion, stimulate local demand by increasing vehicle sales to $9.2 billion and effectively implement industry regulations to revitalize the Philippine automotive industry.

Qualified automotive players will have to produce at least 600,000 units in six years with each of the three companies required to deliver 200,000 units each during the life of the program.

The Trade Department already approved the applications of Toyota Motor Philippines and Mitsubishi Motor Philippines for the program.

The program offers P27 billion worth of time-bound and performance-based fiscal and non-fiscal incentives to support new investments in fixed-capital expenditures in new parts making capability and to encourage large-scale production in vehicle assembly.

Assistance of $1,000 per unit will kick in as soon as each manufacturer produces its 100,000th unit.

The program is anchored on the resurgence of the automotive manufacturing industry and in priming the country as a regional automotive manufacturing hub.

The Philippines recently refocused on promoting manufacturing in the face of the Asean economic integration.

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