Hyundai Asia Resources Inc., the official distributor of Hyundai vehicles in the Philippines, said it will increase its investments in the Philippines to P5 billion in a span of five years as a third industry player in the Comprehensive Automotive Resurgence Strategy program.
Hari president and chief executive Ma. Fe Perez-Agudo told reporters during the opening of the four-day Manila International Auto Show 2018 at the World Trade Center the company would deliver its commitment to the government and to the industry.
“We will pilot our CKD [completely knocked-downed] assembly plant on May 14. This will have all the important processes from welding to painting, among others, and the assembly of about 1,800 parts, both big and small, in one place” Agudo said.
The company said the investment in the CKD plant was around P2 billion. It earlier invested P1.2 billion for the acquisition of an automotive logistics center in Sta. Rosa, Laguna.
Hari said the balance of the proposed investments would be spent on increasing the capacity of the assembly plant to 50,000 units annually by the fourth year of its implementation of the Cars program.
Commercial production is expected to start by September with target production volume of 3,000 to 5,000 units by end-2018.
The company earlier announced it would register two models under the Cars program, including the Eon sedan and the H350 model.
The Cars program is a P27-billion incentives package available to three automotive players that have the capacity to invest in local production of 600,000 units in six years.
The government hopes 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.