Local automotive parts manufacturers are expected to invest an initial P1.6 billion to cater to the growth in demand from the participants of the Comprehensive Automotive Resurgence Strategy (CARS) program.
The Department of Trade and Industry (DTI) said the government was expecting an “influx of investment projects from car parts makers” as CARS required participants to increase their production here. The program provides tax cuts and other incentives to vehicle makers with domestic production.
Two companies already announced plans to participate in the program, a move approved during the time of President Aquino in order to revitalize the local industry. These are Mitsubishi Motors Philippines Corp. and Toyota Motor Philippines Corp.
“In their participation in CARS, Toyota and Mitsubishi will be initially putting in a total of P7.5 billion to produce their respective enrolled models, the full model change Vios and the Mirage/Mirage G4, respectively. Of the amount to be invested, 20 percent or P1.6 billion will come from local parts suppliers,” the DTI said.
The implementation of the CARS program, which dangles some P27 billion worth of incentives to local vehicle assemblers over a six-year period, is also expected to benefit the chemicals, metalworking, tool and die, plastics, electronics, rubber, glass and textile sectors.
The Philippine Parts Maker Association (PPMA) has expressed full support and commitment to participate in the CARS program. Amy R. Remo
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