Terms of CARS extension issued within the year – DTI

MANILA, Philippines — Terms for the extension of an incentives program for vehicle manufacturing are expected to be released within the year, according to the Department of Trade and Industry (DTI).

Trade Undersecretary Ceferino Rodolfo told reporters the terms for the extension of the Comprehensive Automotive Resurgence Strategy (CARS) program are expected to be issued within this year.

In May last year, the Private Sector Advisory Council said President Marcos approved its recommendation for a five-year extension of the CARS program to support automotive manufacturing.

Under Executive Order (EO) 182 issued by the late president Benigno Aquino III for the CARS program, participants have to invest for the production of at least 200,000 units of their enrolled vehicle model within six years to avail of fiscal support from the government.

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

Automotive firms that are part of the CARS program are Toyota Motor Philippines Corp. for the Vios and Mitsubishi Motors Philippines Corp. for the Mirage.

“In the current draft of the EO, the controlling parameter would be the budget, that the government will not allocate additional budget beyond the notional budget that was already given to the two enrolled models,” Rodolfo said.

As to how that will be consumed, he said the government would allow CARS participants to shift from the current enrolled vehicle model to another model, provided only one model per participant would be enjoying incentives at any given time.

He said it would be beneficial for the country if the program could attract one more model to be assembled in the country, within its current budget.

“We’re doing this not just for the companies that are enrolled, the car manufacturers that are enrolled, but in particular, mostly for these car parts makers that are enrolled because we need this so that we can have a robust platform of car parts manufacturers that will transition to electric vehicle (EV) manufacturing,” he said.

The DTI believes the country could become a leading player in Southeast Asia’s EV market by leveraging on its green metals, particularly nickel and cobalt, which are used in EV batteries.

Rodolfo said the Office of the President wants to make sure there is sufficient basis for the President to sign the EO for the terms of the CARS program extension evenwith the Corporate Recovery and Tax Incentives for Enterprises Act in place.