Iseway Motors Philippines, the exclusive distributor of Chery vehicles in the country, will receive additional funding from its investors to finance a planned assembly operations here.
A source familiar with Chery's plans said principal investors are adding P50 million to Iseway Motors' existing capital of P200 million to fund the establishment of an assembly plant.
Putting up an assembly plant in the Philippines will allow Iseway Motors to control and improve the quality of Chery vehicles as the carmaker banks on the Filipinos' automotive skills, the source said.
The source added having a local plant would also lead to lower production costs for Chery.
Chery sold only 1,194 units last year, barely one percent of the total number of cars sold by the industry based on data from the Chamber of Automotive Manufacturers in the Philippines .
Is there enough demand to justify the need for an assembly plant in the Philippines? Only Chery can tell. It may be recalled that marketing and vice president Raymond Tribdino earlier said cars from China "will be the future."
"I want to ride the wave early--as in now. The challenge of China 's capitalist automotive venture is just too much to resist," he said in an interview with TopGear.com.ph in October 2009.
Iseway Motors has 14 dealers selling Chery vehicles in the Philippines , with seven more under construction.