Automotive, News

Automotive Sector Will Resume Operation in Phase 2 of NRP

The phase one of the National Recovery Plan (NRP) will not be ending today (28 June), though the government has revealed that once we do move on to phase two, more sectors will be allowed to open. These include the automotive sector involving the production of vehicles and components.

But in order to transition to phase two of NRP, three conditions have to be met. Daily COVID-19 cases have to be below 4,000; ICU capacity has to be in the medium range; and vaccination rate – for those who have completed two doses – has to be above 10%.

Given that today’s recorded number of cases is 5,218, it will likely be a while longer until we get to the second phase of the NRP. Thankfully, at least the sales tax exemption on CKD and CBU cars has been extended to 31 December 2021 – this should aid the recovery of the local automotive industry, especially with almost no sales at all throughout the month of June 2021.

Car wash centres will also be allowed to open once we transition to the second phase of NRP, along with a number of other businesses, including electronics, computer and telecommunication, and even stationaries.