Toyota Motor Philippines (TMP) reaffirms its support for the government’s nation-building initiatives through its participation in the Comprehensive Automotive Resurgence Strategy program, even after a recent multi-billion-peso budget veto.
TMP president Masando Hashimoto said the company has made major investments of nearly P5.4 billion to meet the target of 200,000 units for the Toyota Vios.
Vios is the company’s locally registered model under the program designed to generate jobs, deepen local parts capacity and promote technology transfer.
The statement follows President Ferdinand Marcos Jr. vetoing P4.32 billion in 2026 CARS program funding. Despite the reduction, the automaker said it remains confident that continued government collaboration would attract investment, create jobs and sustain a vibrant manufacturing sector.
The CARS program, launched under Executive Order No. 182, provides performance-based fiscal incentives to automakers meeting local production targets and deepening domestic component sourcing.
Only two carmakers enrolled in the program: Toyota Motor Philippines with the Vios and Mitsubishi Motors Philippines with the Mirage series. Both committed to producing at least 200,000 units under the original parameters.
“After six years into the CARS program, we believe it has been a win-win concept between the government and private sector in attracting foreign direct investments while providing benefits to both manufacturers and consumers,” Hashimoto said.
He said that sustained government support through industry development programs is critically important for competitiveness as observed in the region. Industry officials note that such programs play a vital role in sustaining investor confidence as the Philippines seeks to compete with neighboring Southeast Asian markets.
The Board of Investments said local automakers would still be eligible for CARS incentives as long as they meet eligibility conditions such as fixed investment commitments and production milestones.
Support is issued through tax payment certificates that can offset excise, income, import duty and value-added tax obligations, it said.
