DTI open to revisions in CARS program due to pandemic

MANILA: The Department of Trade and Industry (DTI) has expressed willingness accept proposals from automakers participating in the CARS (Comprehensive Automotive Resurgence Strategy) program that have been affected by the COVID-19 pandemic.

According to DTI Undersecretary Ceferino Rodolfo, “this is the best time” for automakers to submit specific recommendations, which are supported by industry data, for the inter-agency committee on CARS program to deliberate on.

“We know that they are operating at (a) very difficult economic environment now, that’s why we are willing to take a look at their proposals,” said Rodolfo, who is also the managing head for the Board of Investments.

Under the CARS program, participating automakers have to sell at least 200,000 units of enrolled vehicles in six years to get fiscal incentives from the government, but the industry has been hit hard by the COVID-19 pandemic.

“We are quite concerned about the survival of the auto industry. At this time, we review the policies and the conditions of government support. We need appropriate assistance and collaboration with the government so that we could maintain local production,” said Toyota Motor Philippines (TMP) First Vice President and  Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) President Rommel Gutierrez

CAMPI reported that vehicle sales from January to May this year fell by 51.1 percent. Sales of CARS participants Toyota Motor Philippines dropped by 52.2 percent while Mitsubishi Motors Philippines Corporation sales went down by 49 percent.

“Currently, the policy direction is that we are willing at a longer time period to comply with the volume requirement without adjusting the volume,” added Rodolfo.

Photo from Toyota Motor Philippines Facebook page

Also read: DTI exec: CARS program could be amended amid pandemic