House committee on trade and industry vice chairman Rep. Rufus Rodriguez is leading efforts to further incentivize the Philippine automotive sector with a bill seeking to strengthen the competitiveness of the Philippine motor vehicle manufacturing industry.
“My bill, which has been approved already by the committee on ways and means, is now with the committee on appropriations. Once approved there, it will move to the plenary for a third reading and then proceed to the Senate,” he said.
The proposed legislation seeks to enhance the competitiveness of local vehicle and parts manufacturers through increased subsidies, tax exemptions and expanded import and export incentives.
Rodriguez said the measure would create a technology-neutral framework supporting all sub-sectors of the industry, from parts makers to vehicle body builders, while also promoting mobility and carbon neutrality.
He commended the Board of Investments (BOI) for its ongoing efforts, such as the Strategic Investments Priorities Plan (SIPP) and the Electric Vehicle Incentive Strategy (EVIS).
He said current incentive schemes, particularly under the CREATE MORE law, might not fully address the unique challenges of the automotive sector.
“CREATE MORE is a ‘one size, fits all’ measure that may not be able to address concerns peculiar to the automotive industry,” he said.
BOI executive director for industry development services Corazon Dichosa echoed similar concerns, highlighting the need for better incentives.
“Automakers have expressed that the incentives provided by CREATE MORE are not enough for the automotive players,” she said, adding that the BOI aspires to increase localization to 60 percent in locally assembled vehicles to improve the industry’s competitiveness.
Rodriguez reiterated the importance of maintaining support for conventional vehicle manufacturing alongside efforts to advance electrification.
He called for the extension of the Comprehensive Automotive Resurgence Strategy (CARS) program to sustain manufacturing momentum and urged stakeholders to maximize localization opportunities.
“A strong automotive industry is supported by a strong supplier base. Localization plays a vital role in this effort,” he said.
Data from the Philippine Statistics Authority shows that motor vehicle and parts manufacturing contributes P689 billion in output, equivalent to 10 percent of the total manufacturing sector.
The industry directly employs 109,808 individuals, with P36 billion in compensation and supports more than 400,000 people indirectly based on average household sizes.
