The government-established private sector advisory body said that President Marcos has approved the extension of the Comprehensive Automotive Resurgence Strategy (CARS) program, paving the way for another five years for the incentives program aimed at revitalizing the local automotive industry.

The Private Sector Advisory Council (PSAC) on Friday said that the measure was approved following their recommendation, with the goal of expanding the Philippine automotive industry.

"CARS has demonstrated its effectiveness and value as a high-end manufacturing operation, which has greatly helped in the creation of jobs, transfer of technology and boosted global competitiveness by supporting domestic auto manufacturing and stimulating investment," the PSAC said.

With the extension, the government will continue to provide incentives and support for manufacturers that meet specific requirements in terms of investment, production and technology development, it said further.

Continued job creation

The CARS will also continue to provide significant employment opportunities, added PSAC.

The Philippine units of Japanese car brands Toyota and Mitsubishi—both of which are enrolled in the CARS program —have been pushing for an extension, citing difficulties they encountered during the pandemic.

Mitsubishi Motors Philippines Corp., along with the Toyota Motor Philippines Corp., qualified for incentives under the P27-billion program, which was signed back in 2015.

Under the agreement, both were required to produce 200,000 units of the Toyota Vios and the Mitsubishi Mirage models locally in a period of six years after starting production, which began in 2018.

Based on a six-year life of CARS, the government is expected to have an estimated net revenue of P18.77 billion coming from income tax, value-added taxes and withholding tax payments.

Aside from the extension of the CARS programs, the PSAC said that it has also recommended the expansion of the Motorcycle Micro Business Program, which is aimed to support the development of micro, small and medium enterprises.

"While waiting for the passage of the law, [the] PSAC is seeking for a nationwide expansion via executive order, which aims to create over two million jobs for habal-habal riders and provide access to transform their livelihoods, becoming platform self-entrepreneurs," the council said. INQ