DTI exec: CARS program could be amended amid pandemic

MANILA: The DTI (Department of Trade and Industry) is unsure if participants of the CARS (Comprehensive Automotive Resurgence Strategy) program will hit the target of 200,000 units sold by the end of 2021.

Toyota Motors Philippines Corp. (TMP) and Mitsubishi Motors Philippines Corp. (MMPC) are the two participating car makers for the program. TMP makes the Vios here as part of the CARS program while MMPC makes the Mirage.

Despite the 3,500% increase May 2020 sales compared to April 2020, which was caused by the strict lockdown since March, the DTI is still bracing for the worst.

When asked about adjustments by the to the CARS program to assist the automakers in meeting their targets, DTI Undersecretary Ceferino Rodolfo said it has not been formally deliberated.

“We have not yet discussed. They might be given a longer time to comply with the volume target but not adjusting the volume target itself,” said Rodolfo.

The CARS program, which currently has a Php 27 billion fiscal incentive allocation, requires partner automakers to sell at least 200,000 units of their enrolled vehicle in six years, among others, in order to receive fiscal incentives.

Data from CAMPI (Chamber of Automotive Manufacturers of the Philippines, Inc.) indicate a 51.1% sales drop in January to May 2020 compared to the same period in 2019.

Also read: Vehicle sales shoot up 3,500% in May

Photo courtesy of Audi