Toyota Motor Philippines Corp. or Mitsubishi Motor Philippines Corp., the two dominant players in the local automotive industry, may enjoy incentives on two car models under the Comprehensive Automotive Resurgence Strategy program if a third participating car manufacturer fails to meet the requirements.
The Board of Investments said the government might have to reopen the application period to accept another model from participating car manufacturers.
“If there won’t be a third PCM, we can reopen the application to have a second model for the same PCM,” BoI executive director Corieh Halili-Dichosa told reporters at the sidelines of a forum at the Manila Peninsula Hotel.
A third automotive company wants to join the program but cannot commit to reach the volume required on any of its commercial vehicles to qualify for the program.
Instead, it proposed the assembly of trucks to take the place of another passenger car model. Dichosa, however, said the executive order on CARS was specific on passenger cars models only.
“But I’m not privy to their talks with the BoI. If they say they can come up with the volume, there must be some ways that the BoI may consider their proposal,” she said.
The BoI is set to release the implementing rules and regulations on the CARS program anytime next week as it finalizes a joint administrative order with the Finance ans Budget Departments.
The administrative order will define the kinds of incentives that will be given to participating car manufacturers and the responsibilities of concerned agencies involved in the program.
“What the BoI wants is to finish the JAO first before we release the IRR. [The order] will trigger whatever is needed to craft the internal procedures,” said Dichosa.
The program requires all qualified companies to produce at least 600,000 units during the life of the program.
CARS offers P27 billion worth of fiscal and non-fiscal incentives to support new investments in new parts making capability and to encourage large scale production in vehicle assembly, as well as exports to other markets.