Govt to Mitsubishi Motors: Enroll Xpander in CARS

T he Department of Trade and Industry (DTI) is urging Mitsubishi Motors Philippines Corp. (MMPC) to enroll its Xpander model in the Comprehensive Automotive Resurgence Strategy (CARS) program.

“We’re really hoping that because the Xpander is very popular, we are hoping that (MMPC) will make the next-generation Xpander in the Philippines,” DTI Special Trade Representative for Philippine Trade and Investment Center in Tokyo Bernardita A. Mathay told reporters in a virtual media briefing on Tuesday.

Mathay said the inclusion of Mitsubishi’s Xpander model is the Trade department’s request for the remainder of the CARS Program.

Meanwhile, in a televised interview on Wednesday, Trade Secretary Alfredo e. Pascual said the DTI wants to extend the CARS program.

“We have the car resurgence program. however, it was stalled because of the pandemic. We’re looking at the possibility of extending that particular program,” Pascual said.

CARS is a government stimulus program that aims to revive the country’s declining manufacturing sector by specifically targeting the automotive industry, given its strong linkages to other industries and its so-called multiplier effect.

Toyota and Mitsubishi enrolled Vios and Mirage, respectively, in the incentives program, which is set to expire in 2024. The said program mandates a minimum production goal of 200,000 units for a maximum of six years, or the life span of the particular model enrolled.

The Board of Investments (BOI) said in December that Mitsubishi started its production in February 2018 while Toyota started in July 2018.

For his part,tmp First Vice President and Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) President Rommel R. Gutierrez said the CARS program has to be extended until 2027 to allow participants to achieve its objectives.

In a media briefing last December 2022, BOI Managing head and Trade undersecretary Ceferino S. Rodolfo said the production of Mitsubishi Motors Philippines and Toyota Motor Philippines reached 207,165 units.

Rodolfo said Toyota accounted for a bigger chunk of the figure at 134,242 units, while Mitsubishi produced 72,923 units.

The investment promotion agency said Mitsubishi employed 35,606 people, while Toyota created 74,353 jobs, including those in parts making and the provision of ancillary services.

According to the BOI, Mitsubishi has six participating parts makers (PPMS). Toyota also has six PPMS. The agency noted, however, that the car manufacturers have three common PPMS.

The agency attached to the Department of Trade and Industry said investments in the CARS program have reached P9.6 billion. It has also resulted in $1.01-billion foreign exchange savings.

Net government revenues amounted to P18.77 billion based on a six-year model life, according to the agency.

Rodolfo earlier said the BOI is “closely working with the industry on a CARS extension.”