Auto parts makers bewail ‘gray’ van mart
Many of these vehicles, the group said, are right-hand-drive converted to left-hand drive.
Many of these vehicles, the group said, are right-hand-drive converted to left-hand drive.
The campaign against the registration of illegally imported mini vans and Japan Domestic Market (JDM) cars has gained support from a local vehicle body manufacturers’ group, citing safety and economic concerns.
The vehicles were not brought in through official distributor channels but entered the country via used-vehicle auction exporters, according to the Automotive Body Manufacturers Association of the Philippines (ABMAP).
Many of these vehicles, the group said, are right-hand-drive (RHD) converted to left-hand drive (LHD).
ABMAP said the “unchecked gray market undermines road safety, government revenue, and the Philippine automotive manufacturing ecosystem.”
The group cited Republic Act 8506, which bans the use of right-hand-drive vehicles in the country.
Integrity tests sought
While some importers convert RHD units to LHD, the Land Transportation Office (LTO) and safety regulators have raised concerns over the structural integrity and crashworthiness of such modifications.
“Conversion is not simply flipping the steering wheel. If improperly done, it can affect steering geometry, braking systems, crash structure, and overall safety performance,” ABMAP Executive Director Edgar Manuel said, adding that strict enforcement by the LTO is justified.
ABMAP also highlighted the economic impact of illegal imports, noting that the automotive sector accounts for an estimated 1.5-2 percent of gross domestic product and supports 250,000-300,000 jobs nationwide.
It said each illegally imported vehicle can evade P300,000 to P600,000 in duties and taxes, resulting in an estimated P3 billion to P6 billion in annual revenue losses.
“These vehicles do not undergo proper homologation, emissions testing, or safety certification,” Manuel said. “Gray imports reward non-compliance and penalize legitimate manufacturers that invest in quality and compliance.”
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