Toyota and Mitsubishi are the first two participants of CARS. The budget will now be placed to support the PUV modernization.
The Board of Investments (BOI) has closed the third slot under its Comprehensive Automotive Resurgence Strategy (CARS) program, instead, shifting its focus towards supporting the assembly of eco-friendly public utility vehicles (PUV) priced below P1 million.
Toyota Motor Philippines and Mitsubishi Motors Philippines are the first two participants of CARS, which mandates the production of 200,000 units of a chosen model per manufacturer over a six-year period.
According to Trade Secretary and BOI Chair Ramon Lopez, no other automaker felt they could meet the CARS quota, which is why the agency is scrapping the third slot.
According to Trade Secretary and BOI Chair Ramon Lopez, no other automaker felt they could meet the CARS quota
“There were really no other players. But the good aspect of this is that this, in turn, will benefit more because the budget will now be placed to support the PUV modernization,” he said.
Approved under the Aquino administration, the P27-billion CARS program provides incentives to car manufacturers, encouraging them to increase local car assembly and allowing industry players to become more competitive.
Three prospective local car assemblers were originally planned to participate, with the government offering incentives of P9 billion for each automaker. These will come in the form of tax payment certificates, which will be used to offset the tax and duty obligations for the participating companies.