The local automotive industry is facing a bumpy road ahead as illegally imported cars continue to flood the Philippine market, making the competition tougher. Rafaelita Aldaba, a senior research fellow at the Philippine Institute for Development Studies, said in a study vehicle importers were taking advantage of free port zones across the country to evade government duties. Cars illegally imported through the free ports, thus, are priced 30 percent to 50 percent lower than those legally bought from abroad. Aldaba said smuggling and the importation of used vehicles impeded the growth of the country`s automotive industry. Murky policy environment, discrepancy of statistics on registered motor vehicles, and revenue losses in the industry are also discussed in the study, which reflect the government`s lackluster effort to curb car smuggling,” the PIDS said in a statement released Tuesday.
