Toyota awaits CARS rules to firm up entry

Toyota Motor Philippines Corp. ( TMP) is eagerly awaiting the release of the government’s implementing rules and regulations ( IRR) for the Comprehensive Automotive Resurgence Strategy ( CARS) program to finalize its participation. In an interview, TMP president Michinobu Sugata said the company is looking to clarify certain points in the program first before fully counting itself in. He said they expect the Department of Trade and Industry ( DTI) to come out with the IRR by the end of the month. “Of course we are waiting. I believe ( it will be issued) soon,” Sugata said. Sugata earlier said TMP is considering joining the CARS program as it seeks to take advantage of the government’s tax incentives. He said the Vios model is likely to be its top contender for the program as it is the company’s bestseller to date. The CARS program, approved on May 29 by President Aquino, seeks to encourage local car assembly through incentives and allow industry players to become more competitive and tap opportunities in the regional supply chain. A total P27 billion will be allotted for the program, with each enrolled vehicle model entitled to fiscal support at a maximum of P9 billion. The fiscal support will be given in the form of tax payment certificates to be used to defray the participating car companies’ tax and duty obligations. By joining the program, Sugata said TMP is also likely to pour in additional investment for parts manufacturing. TMP sold 57,717 units across all its models in the first half of the year, 19 percent higher compared to the same period last year. The car firm is looking to sell 110,000 vehicle units this year. Its sales, however, may reach 120,000 with strong demand expected from the new Hilux model.