Auto industry welcomes extension of CARS program

MANILA, Philippines — The country’s automotive industry welcomed President Marcos’ approval of the five-year extension of the Comprehensive Automotive Resurgence Strategy (CARS) program.

“The extended CARS program is a welcome development. The auto industry expresses its appreciation to the current administration for continuing the government’s strong support to the industry, particularly the auto manufacturing sector,” Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez told The Star in a text message.

“CARS program is a significant government support as it helps the industry, among others, maintain and promote employment not only to the manufacturers, but also parts suppliers and other allied industries,” he said.

Malacañang has approved the five-year extension of the CARS program to boost the country’s automotive industry, according to the Private Sector Advisory Council (PSAC).

“With continued industry-government collaboration, we can further attract more investments for auto manufacturing which is a significant contributor to the Philippine economy,” Gutierrez said.

The PSAC said President Marcos has approved the extension of the program to help attract new investments and develop the country as a regional automotive manufacturing hub.

The PSAC said the CARS program has demonstrated its effectiveness and value as a high-end manufacturing operation which has greatly helped in the creation of jobs, transfer technology, and boost global competitiveness by supporting domestic auto manufacturing and stimulating investment.

“The extension of CARS for five years will continue to provide incentives and support for manufacturers that meet specific requirements in terms of investment, production, and technology development,” it said.

According to PSAC, the program would continue to provide significant employment opportunities, as well as the foundation for the future development of the economy.

Under Executive Order 182 issued by late president Benigno Simeon Aquino III for the CARS program, the government offers fiscal support to participants in exchange for investments for the production of at least 200,000 units of their enrolled vehicle model within six years.

An enrolled model is qualified for fiscal support amounting to P9 billion.

Vehicles enrolled under the program are the Mirage model of Mitsubishi Motors Philippines Corp. (MMPC) and the Vios model of Toyota Motor Philippines Corp. (TMP).

Figures from the Department of Trade and Industry (DTI) showed that combined production under the program stood at 207,165 units as of December 2022.

Of the total, TMP, which started production in July 2018, accounted for 134,242 units of its Vios.

MMPC, which started production in February 2018, produced a total of 72,923 units of its Mirage model.