Statemotor would assemble up to 500 CVs a year, and also churn out parts at its Las Pinas City plant. Chinese automotive giant GWM will supply the completely knocked down (CKD) kits as well as parts and components through a technical licensing agreement.

GWM has authorized Statemotor to assemble Wingle 4x4 and 4x2 pickups, as well as Hover 4x4 and 4x2 sport utility vehicles (SUVs).

Statemotor's assembly operations would begin next month, while parts manufacturing would start in July next year.

GWM has more than 30 subsidiaries churning out up to 500,000 units a year. It exports to more than 100 countries and regions, according to its website.

Another Chinese auto player that would establish its presence in the Philippines is Jainghuai Automobile Co. Ltd. (JAC), whose local partner JAC Automobile International Philippines Inc. would assemble one- to three-ton light trucks.

JAC entered into a technical licensing agreement with the Philippine partner for the supply of CKD kits and parts and components.

This project was approved by the BOI in August. Its operations would begin in January next year.

JAC produces about half-a-million units a year, and is among the largest Chinese auto manufacturers.

Motorcycle maker Chongqing Astronautic Bashan Motorcycle Manufacturing Co. Ltd. (Bashan), meanwhile, entered into a technical licensing agreement with local firm Racal Motor Assembly Corp. (RMAC) for the supply of CKD kits as well as parts and components that would be used in assembling Bashan motorcycles.

RMAC became a registrant of the Philippines' Motor Vehicle Development Program (MVDP) in June, and began producing for Bashan in July.

Bashan has an annual production capacity of about 500,000 units, of which some are exported to more than 20 countries in Asia, Africa, Europe and Latin America.

Projects participating in the existing MVDP, or Executive Order (EO) 156, are qualified for tax incentives and other perks under the annual Investment Priorities Plan (IPP).

The MVDP is the precursor of the Comprehensive Motor Vehicle Development Program, which is expected to take effect as soon as its implementing rules and regulations are approved by the end of the month.