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Philippines: BOI to review CARS proposal
MANILA, Philippines — The Board of Investments (BOI) is willing to study proposed revisions to the Comprehensive Automotive Resurgence Strategy (CARS) on production targets and timeline to meet the volume requirements under the program as the COVID-19 outbreak has slowed the demand for new vehicles.
Trade Undersecretary and BOI managing head Ceferino Rodolfo told reporters the government understands the situation of the automotive industry, which is among the sectors hit hard by the pandemic.
“We know that they are operating in a very difficult economic environment, that’s why we are willing to take a look at their proposals. So if they have specific proposals on the volume requirement, on the timeline for compliance to the volume requirement, we are willing to take a look at it,” he said.
While the BOI is open to proposals, Rodolfo said the agency is not keen on making adjustments on the production target under CARS.
“Currently, the policy direction is that we are willing to take a look at a longer period to comply with the volume requirement without adjusting the volume,” he said.
With the BOI set to convene the interagency committee on the CARS program, Rodolfo said now is the best time for participants to submit their proposals.
He said the recommendations should include data on the sales of vehicles under the CARS program relative to the overall sales performance during the pandemic period.
By participating in the CARS program, firms are eligible to receive incentives from the government.
In order to avail of the incentives, participants need to produce 200,000 units of their enrolled vehicle model within six years.
Companies that are participants of the CARS program are Toyota Motor Philippines Corp. (TMP) for the Vios and Mitsubishi Motors Philippines Corp. for the Mirage.
Last week, TMP first vice president Rommel Gutierrez said there is a possibility that the production volume target under the CARS may not be met due to the pandemic.
As such, he said the government may have to review the policies and conditions of the government support.
From January to July, sales of the Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association fell by 49 percent to 105,583 units from 205,945 units last year as the government-imposed lockdown to curb the spread of the virus forced vehicle firms to temporarily close dealerships and affected the appetite for new cars.
Source: https://www.philstar.com/business/2020/08/24/2037342/boi-review-cars-proposal