By means of Justine Irish D. Tabile, Reporter
The Philippine Government is a completion of a stimulation program that, according to the production companies, encourages production activities in the country, according to the VanFIce of the special assistant of the president for Investment and Economic Affairs (OSAPIA).
Osapiea -Chief Frederick D. Go said that the government would soon be revitalizing the car industry for competitiveness (racing) program.
“The previous administration came with the Comprehensive Automotive Resurgence Strategy (CARS) program, and that has already been done, but we want to continue to promote the vehicle industry,” he told reporters on Monday.
Mr. Go said that the racing program would offer incentives to companies that will produce new car models in the country.
The program will be implemented by the Department of Trade and Industry (DTI), in contrast to cars, which was founded via an executive order.
“We have designed Race so that it is a department initiative,” said Mr. Go, and noticed that funds have assigned for the program via the 2025 General Credit Act.
The racing program has been assigned P250 million among the DTIs Budget for locally financed projects.
Founded via Executive Order No. 182 By then President Benigno S. Aquino III, the Cars program intended to attract new investments in the car industry.
It offered three slots for car manufacturers, which were needed to produce at least 200,000 units of a registered model to use the stimuli.
Only two slots were filled – Toyota Motor Philippines Corp. (TMP), who produces the VIOS Sedan, and Mitsubishi Motors Philippines Corp. (MMPC), who produces the Mirage Hatchback and Mirage G4 Sedan.
Mr. GO hinted that the racing program could accept more than three participants.
“We have learned from cars … The (racing) program is somewhat different, but the intention is the same that if you introduce more local components into the vehicle, you can qualify for the (incentives),” he added to it Toe.
With the new program in the making, TMP and MMPC are expected to register new models again via Race.
“We have expressed our intention to DTI to register the next generation of Tamaraw as an extra car model if it is supported by regulations (Cars Extension), especially when considering reasonable flexibility for new production models,” TMP said in a declaration.
“In the event that the DTI creates a new car-like program instead of carrying out the existing program, we will be happy to seize that opportunity to make the Tamaraw even more sustainable for our car manufacturers, as well as our participants and even physicians,” the Added to it.
TMP has recently invested P5.5 billion in its Laguna factory to perform vehicle production and internal and outsourced parts localizations, and to build a new conversion facility.
In the meantime, Mitsubishi Motors Corp. (MMC) in a recent call to President Ferdinand R. Marcos, Jr. A P7 million investment in the Philippines during the next five years.
According to the presidential communication of a new production model in Laguna, the investment plan would includeFICE (PCO). The PCO said MMC would participate in the racing program.
In the meantime, the Philippine Parts Maker Association, Inc. (PPMA) At the government to create a favorable environment for car manufacturing and assembly so that the Philippines could keep its neighbors in the Association of Southeast Asian Nations (Asean) region.
“The time for action is now. Without immediate intervention … the risk of the Philippines is further behind its ASEAN competitors, “the group said in a statement on Monday.
“The urgency to adapt and evolve in the automotive sector cannot be overestimated. More decisive measures are essential to promote a sustainable and competitive car industry in the Philippines, “it added.
From data from the Asean Automotive Federation, the Philippines showed 116,650 motor vehicles in the first 11 months of 2024, which are in fifth place in terms of production volume under six Asean countries.
Thailand produced most cars, a total of 1.36 million in the period from January to November, followed by Indonesia (885,516), Malaysia (725,173) and Vietnam (157,115).
“Our industry is in danger. We urgently need to take measures to breathe new life into our production options of our car -or we will be left with our ASEAN neighbors, ”said PPMA President Ferdinand I. Raquelsantos.
“The DTI plays a crucial role in this scenario and promotes initiatives that can not only maintain, but also improving the production sector of the car sections is necessary,” he added.
Earlier, the PPMA said that the government could support the industry by obliging a local substantive requirement of 30% for vehicles collected in the Philippines and giving incentives such as vacations tax and exemption on raw materials.
It also proposed tax credits for export, accelerated depreciation for machines and improved subtractions for research and development.