Bilyonaryo Ayala Corporation announced plans to go into the manufacture of four-wheel vehicle once the conglomerate has established its capacity to produce mid-class motorcycles and exports most of these units to China.
To pursue its strong focus into the manufacturing sector, the publicly-listed company has created another subsidiary AC Industrial Technology Holdings Inc. (AC Industrials) to house the existing and future assets of Ayala Group?s Automotive and Integrated Micro-electronics Inc. (IMI).
AC Industrials CEO Arthur Tan told a press conference of the plan to go into the production of four-wheel vehicle as a follow up to its motorcycle joint manufacturing venture with KTM AG of Austria, which aims to transform the Philippines as its motorcycle manufacturing hub in Asia.
For its car manufacturing plan, Tan said they will not be vying for the current CARS Program of the Board of Investments. Rather, they will need another program wherein the government?s package of incentives will encourage the production of cars, which are technology and innovation-driven.
Tan would like to shy away from the volume-based incentives of the CARS Program but rather a program that recognizes technology and innovation, which will differentiate the car models of the future from the old technology.
For its motorcycle business, AC Industrials and KTM AG of Austria have formed a joint venture KTM Asia Motorcycle Inc., which is 66 percent owned by the AC Industrials and the rest by KTM. Production will start in January next year with 20,000 units of KTM motorcycles of which 70 percent will go to China and the rest for the local market.
?We build to export out, we will prove that we can produce and China will buy from us. If it is KTM it has to be world class,? Tan said stressing he will prove that the Philippines can produce better motorcycles for the exports market.
