Nissan Philippines Incorporated is currently evaluating its options regarding local assembly of a new model at its plant following the recent approval of the Comprehensive Automotive Resurgence Strategy (CARS), according to Antonio Zara, the president and managing director of the local unit, as reported by local publication the Philippine Star. Speaking at the launch ceremony for the latest Urvan van model (known as the Caravan globally), the executive said, "With the CARS programme coming out...we are going through that study phase and if it comes out beneficial to build new models in the Philippines, then investment will not be an issue…We will have to consider not just domestic demand but also exports." Zara added that exports would still be a challenge for the Philippine unit given the automaker's strong manufacturing operations in neighbouring markets such as Thailand and Indonesia. "It will be challenging for us to compete in economies of scale with those countries...We have to define our niche," he said.
Significance: Nissan currently operates two plants in the Philippines, in the state of Laguna: one in Santa Rosa City and one in Technopark Laguna. The plants together assemble six nameplates – the Urvan, the Almera, the Frontier, the Patrol, the X-Trail, and the Grand Livina (known as the Note globally), with kits sourced from Nissan's plants in Japan, Thailand, and Indonesia, according to IHS Automotive data. Zara revealed that the new Urvan would be supplied to the Philippines in completely built-up form by Nissan's Japanese plant starting this year, thanks to the benefits arising from the Japan-Philippines Economic Partnership Agreement. Our data further indicate that Nissan will discontinue local assembly of all other models except the Almera and Patrol some time this year; the latter two models will continue to be assembled locally. Nissan's Philippine plants mostly cater to local demand, while the unit also supplies models to Saudi Arabia, Kuwait, and Peru, albeit in very limited volumes. Nissan, like many other automakers in the Philippines, is banking heavily on the government-approved CARS programme, which is intended to boost local vehicle manufacturing
