A Candid Conversation with Atty. Rommel Gutierrez
AUTO & TECH | Steering the Future of the Philippine Auto Industry – A Candid Conversation with Atty. Rommel Gutierrez | by Mark Saberola | Setting the stage for a fascinating discussion, we zoomed down the highway of candid dialogue with Atty. Rommel R. Gutierrez, First Vice President of Corporate Affairs Group at Toyota Motor Philippines Corporation and President of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI). With his hands on the steering wheel of two major automotive organizations, Atty. Gutierrez’s insights provide a profound look into the Philippine automotive industry’s pulse.
A Symphony of Collaboration in the Auto Industry
In the vehicular orchestra that is the Philippine auto industry, competition, Gutierrez believes, is the soundtrack to its evolution. “The more players we have, the more competition we have, that’s good for the industry and eventually for the customers,” he states, acknowledging that despite the competitive environment, there’s a strong sense of camaraderie among CAMPI members.
Evolution of Auto Technologies and the Philippine Market
Gutierrez noted the influx of state-of-the-art vehicles into the Philippine market, including hybrids and electric vehicles, indicating the starting point of a shift in consumer preferences and market trends. However, he acknowledged that self-driving and fuel cell technologies, already present in other countries, are yet to make their entry.
Reflecting on his tenure at Toyota since 2002, Gutierrez pointed out the significant expansion in sales from about 90,000 units to nearly 400,000 units. But he also underlined a shift in local production, which once made up 70% of total sales, has now declined to less than 30%, indicating the impact of liberalized imports.
While the importation did help to level up market offerings in terms of technology, it eroded the share of locally produced vehicles. Furthermore, he discussed how global crises, like the recent pandemic, significantly impact the auto industry, with sales dropping by about 40% at the height of the COVID-19 outbreak.
Driving Forward: The Road to Recovery
Nonetheless, the industry is now rebounding, with 2023 expected to surpass pre-pandemic levels. Gutierrez reflects, “this year we expect to hit more than the pre-pandemic level. So we’re doing good.”
The Challenge of Harmony in CAMPI
As president of CAMPI, Gutierrez faces the challenge of harmonizing the diverse interests of various automotive players. In a landscape with increasing numbers of entrants, including brands from China, the task at hand is to unite voices and provide a consensus-driven stance when interacting with government entities. The goal is to build understanding among members about different market positions and focus areas – be it hybrid, electric, or internal combustion engines (ICEs).
Speaking on the government’s role, he acknowledges their encouragement for local production. But he also notes the necessity to strengthen the existing ICE-focused manufacturing infrastructure. “Much as the government wants to leapfrog on the electric or what, we have to make them understand and members agree that we have to strengthen what is already in existence and those are ICEs, the internal combustion engines,” Gutierrez concludes.
It was a pleasure to cruise down the highway of dialogue with Atty. Gutierrez, and as we sign off, we can’t help but quote our signature line, “Tara! Byahe tayo!”
