DTI urges CARS participants to send policy revision proposals

The Department of Trade and Industry (DTI) is open to any recommendations from the participating carmakers under the Comprehensive Automotive Resurgence Strategy (CARS) program.

 

DTI Undersecretary Ceferino Rodolfo told reporters the government understands the situation of the domestic automotive industry in this time of the pandemic.

 

He said, “this is the best time” for the industry to submit their specific recommendations supported by industry data for the inter-agency committee on CARS program to discuss the proposals.

 

“We know that they are operating at (a) very difficult economic environment now, that’s why we are willing to take a look at their proposals,” said Rodolfo, who is also the managing head for the Board of Investments.

 

At the digital launching of the Toyota Corolla Cross last week, Toyota Motors Philippines (TMP) first vice president Rommel Gutierrez said the pandemic has “badly hit” sales of Toyota Vios and Mitsubishi Mirage, the enrolled models under the CARS program, and “there is a threat that the participants of the CARS program may not be able to achieve the target volume”.

 

Under the program, participating car makers have to sell at least 200,000 units of enrolled vehicles in six years to get fiscal incentives from the government.

 

The CARS program was signed in 2015 to stimulate local automotive manufacturing.

 

“We are quite concerned about the survival of the auto industry,” said Gutierrez, who is also the president of the Chamber of Automotive Manufacturers of the Philippines, Inc.

 

“At this time, we review the policies and the conditions of government support. We need appropriate assistance and collaboration with the government so that we could maintain local production,” he said.

 

Rodolfo reiterated he is more willing to provide a longer time for the participating carmakers to comply with the volume target than reducing the volume requirement.

 

“But currently, the policy direction is that we are willing at a longer time period to comply with the volume requirement without adjusting the volume,” he added.

 

Source: Philippines News Agency

Related posts