PRESIDENT Ferdinand R. Marcos, Jr. urged Sazgar Philippines, Inc. to increase its use of locally made components as the government pushes to deepen domestic manufacturing and expand electric vehicle (EV) production.
“At present, many of your parts still come from abroad,” Mr. Marcos said during the inauguration of the company’s manufacturing and assembly plant in Biñan, Laguna on Thursday. “I ask you to grow your Filipino supply chain year after year.”
The facility can assemble about 12,000 three-wheeled vehicles annually, including electric and internal combustion engine models.
Sazgar Engineering Works Ltd., founded in Lahore in 1991, imports vehicle components and completely knocked-down kits from Pakistan for assembly in Laguna province. Finished units undergo testing of mechanical systems, electrical components, brakes and lighting before release.
Mr. Marcos said the company expects to obtain all of its parts locally within about a year, adding that the government would work with the company to support the effort.
The plant is expected to create jobs in Laguna and business opportunities for local suppliers of batteries, glass, upholstery, rubber and other components.
“This plant qualified under our Strategic Investment Priority Plan because it adds real value locally — at least a quarter of the value of every unit, and the BoI (Board of Investments) projects even more,” the President said.
“That is the kind of investment that we want. Not just companies that sell to Filipinos, but companies that make things with Filipinos,” he added.
The President said the project supports efforts to build a domestic EV manufacturing base while reducing the country’s dependence on imported fuel.
“For the country, every vehicle that runs on electricity means a little less dependence on imported fuel,” he said.
The plant’s initial production mix will consist of 60% electric units and 40% internal combustion engine units, with the share of EVs expected to rise as demand grows, Mr. Marcos said. He added that the company is 60%-owned by Filipino investors.
He said tricycles travel about 90 kilometers a day in urban areas and 110 to 120 kilometers in provincial areas, distances that can be covered on a single charge. A full charge takes six to eight hours, he added.
Mr. Marcos said the project supports the government’s goal of increasing the share of EVs in the country’s vehicle fleet to 50% by 2040.
“We are pushing to build more EVs here at home, so that cleaner, modern transport is well within the reach of every Filipino,” he said.
He added that government agencies have been directed to prioritize EV purchases or consider EVs when leasing vehicles.
Sazgar Philippines President and Chief Executive Officer Muhammad Fahim said the company plans to support the government’s EV program through local manufacturing, workforce development, partnerships with Philippine suppliers and future exports to Southeast Asian markets.
Pakistan Ambassador to the Philippines Asima Rabbani said Pakistani investors have also invested millions of dollars in trucking and pharmaceutical ventures in the Philippines. — Erika Mae P. Sinaking