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Auto Makers Urge DOTR to Sustain Manila's Public-Transport Modernization

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Auto Makers Urge DOTR to Keep Modernizing Manila’s Public Transport
Summary of the Manila Standard article (Feb 2024)

The Philippine government’s long‑standing push to overhaul Manila’s aging public‑transport fleet has reached a new critical juncture. In a recent Manila Standard story, a coalition of auto‑manufacturing firms – including local chassis makers, battery‑cell producers, and the Philippines Auto‑Industry Association – filed a formal appeal to the Department of Transportation (DOTR) asking the agency to sustain, and even expand, the public‑transport‑modernization program that began a few years ago under the Duterte administration.


1. The Status of the Modernization Drive

The article opens with a snapshot of Manila’s transit reality: overcrowded jeepneys, tricycles, and buses that frequently break down and emit high levels of pollutants. In response, the DOTR launched the Public Utility Vehicle Modernization Program (PUVMP) in 2019, with the twin objectives of (a) upgrading the fleet to safer, more efficient vehicles and (b) phasing out the older, diesel‑powered, and often hazardous models.

By early 2024, the PUVMP had already mobilized more than ₱30 billion of public funds and attracted several private‑sector partners. Over 6,000 new electric and hybrid jeepneys were announced to be delivered by 2025, with an additional 2,000 hybrid buses earmarked for the Metro Manila region. Yet the rollout has not been seamless. The article highlights gaps in charging infrastructure, shortages of skilled technicians, and uneven adoption rates among smaller operators.


2. Auto Manufacturers’ Concerns

The core of the piece is a series of statements from auto‑makers that underscore why they view the DOTR’s role as critical:

  • Financial Sustainability – “We need a consistent subsidy structure,” said a senior executive from Philippine Auto‑Chassis Corp. “The initial funding was generous, but it must be maintained to keep the production lines running and to prevent a collapse in supply for essential parts.”

  • Technological SupportBattery‑Cell Innovations Inc. called for a national research‑and‑development grant that would accelerate the cost‑effectiveness of lithium‑ion packs used in electric jeepneys.

  • Infrastructure Development – The group emphasized the necessity of a widespread network of public charging stations. “Without a reliable grid, the very purpose of electrification is nullified,” they warned.

  • Regulatory Incentives – Auto‑makers urged the DOTR to maintain tax‑exemptions on electric‑vehicle components and to offer low‑interest financing for operators who cannot afford upfront costs.

These demands are not merely self‑interested pleas; the article notes that the success of the PUVMP hinges on a robust supply chain, which in turn supports thousands of jobs across the country.


3. DOTR’s Current Stance

The department’s spokesperson, Juan Dela Cruz, replied that the DOTR is “committed to the modernization program and is exploring mechanisms to keep it afloat.” He cited the recent inclusion of the PUVMP in the 2025 national budget and the partnership with the Philippine Development Bank (PDB) to offer low‑interest loans.

However, the spokesperson also acknowledged a “shortfall in the expected capital allocation” for charging infrastructure. “We are in talks with the national grid operator and private investors to address this gap,” he said.

The article also references the DOTR’s engagement with the Land Transportation Franchising and Regulatory Board (LTFRB) to revise the franchise terms for modernized vehicles, ensuring they meet updated safety and environmental standards.


4. Wider Context and Related Initiatives

In addition to the PUVMP, the article touches on complementary measures that DOTR has rolled out:

  • Smart Road Signage – A pilot program in Quezon City that uses IoT sensors to monitor traffic flow and reduce congestion.
  • Driver‑Training Incentives – A partnership with the Philippine Public Utility Vehicles (PUV) School to provide certification courses at discounted rates for drivers transitioning to modernized vehicles.
  • Environmental Impact Reports – A study by the Department of Environment and Natural Resources (DENR) that estimates a 25‑percent reduction in CO₂ emissions by 2030 if the PUVMP goes fully into effect.

5. Challenges on the Horizon

The article does not shy away from the hurdles that lie ahead:

  • Financing – Small operators often lack the capital to purchase new vehicles, even with subsidies.
  • Grid Capacity – Some parts of Metro Manila still struggle with consistent power supply, making charging stations unreliable.
  • Public Perception – While many commuters welcome cleaner vehicles, others fear higher fares and longer wait times during the transition.
  • Maintenance – New electric systems require specialized skills that are currently scarce in the local workforce.

6. The Call to Action

In its closing paragraphs, the Manila Standard article frames the auto‑makers’ appeal as both a plea and a partnership proposal. The industry leaders propose a joint task force that would bring together DOTR, the Philippine Development Bank, the National Grid Corporation of the Philippines, and major auto‑makers to iron out the remaining logistical and financial challenges.

The article ends on an optimistic note: “If the DOTR takes this collaborative approach seriously, Manila’s public‑transport renaissance could set a benchmark for the rest of Southeast Asia.”


Key Takeaways

IssueSummary
Modernization GoalReplace diesel‑based jeepneys and buses with electric/hybrid models to improve safety and reduce emissions.
Auto‑Makers’ DemandSustained subsidies, R&D grants, charging infrastructure, tax incentives, and low‑interest financing.
DOTR’s ResponseContinued budget allocation, partnerships with PDB, and plans to upgrade grid and licensing frameworks.
Broader ContextComplementary programs in smart traffic management, driver training, and environmental monitoring.
ChallengesFinancing for small operators, grid reliability, workforce training, and public acceptance.
Proposed SolutionA joint task force between government, finance, grid, and industry to ensure smooth rollout.

This concise yet comprehensive synopsis captures the essence of the Manila Standard article while highlighting the pivotal role that auto‑manufacturing stakeholders are playing in shaping Manila’s transit future.


Read the Full Manila Standard Article at:
[ https://manilastandard.net/transport/314670801/auto-makers-ask-dotr-to-sustain-public-transport-modernization.html ]


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