EXPANSION OF CARS PROGRAM STILL UNDER STUDY

The Department of Trade and Industry (DTI) said it is still assessing whether the government will expand the Comprehensive Automotive Resurgence Strategy (CARS) program, citing that officials are awaiting proposals from the private sector about the measure.

Speaking to reporters earlier this week, Trade Undersecretary Ceferino Rodolfo said the matter is being studied following the discussions between them and representatives from the two participant firms, Toyota Motors Philippines Corp. and Mitsubishi Motors Philippines Corp.

“The [Trade] Secretary has met with the two CARS program participants on how much longer they need so that they can be given a reasonable amount of time of extension,” Rodolfo said, citing that the two automobile firms are still finalizing their offer to the government.

Rodolfo said they are expecting to see what benefits the two automobile companies can offer in exchange for the time extension in complying with the sales volume target.

The two car companies qualified for incentives under the CARS program, which was signed in 2015, under an arrangement that both firms will locally produce 200,000 units of the Toyota Vios and the Mitsubishi Mirage models in a period of six years.

The Philippine government allotted P27 billion in fiscal incentives under the program.

“The DTI fully understands the impact of the pandemic on all industries, particularly on the automotive industry. The demand was really hit as well as their supply chain,” the trade official said.