Toyota Motor Philippines Corp. (TMPC) and Mitsubishi Motors Philippines Corp. (MMPC) have produced a total of 207,165 units of their respective enrolled models under the Comprehensive Automotive Resurgence Strategy (CARS) program to date, or just half of the 400,000-unit volume required under the six-year program.

Trade and Industry Undersecretary and Board of Investments (BOI) Managing Head Ceferino S. Rodolfo said that of the total, TMPC was able

to produce 134,242 units while MMPC contributed 72,923 units.

Rodolfo explained that under

ideal scenario the two program participants are able to produce 3,300 units per month or combined 302,00 units for the two models as of October 2022. But the pandemic

has affected the operations of TMPC and MMPC.

Rodolfo, however, said that while the production volume was behind the 400,000 units or 200,000 units per participant required under CARS over a six-year program, the participants have “achieved quite a lot” since the start of their operation. MMPC started production in Feb. 2017 for

its Mirage/Mirage model while TMPC began in July 2018 for its Vios model.

For instance, Rodolfo said there are six participating parts makers (PPMs) raising the local

content of MMPC’s Mirage and G4 to 42 percent from 22 percent.

The MMPC project also generated 35,606 employment direct and indirect jobs from parts makers and ancillary services.

For TMPC, its project has six participating parts makers and created 74,353 employment for Filipinos. The local content of Vios also improved to 42 percent from 32 percent.

In addition, Rodolfo noted the program participants have already invested P9.6 billion. Their local car production also translated into 1.01 billion in foreign exchange savings due to import substitution.

For the six year CARS program, the BOI has estimated net government revenues of P18.77 billion from income taxes, VAT, duties, and withholding tax payments.

In turn, the estimated government incentives to the CARS program participants would hit a total of P7 billion over the six-year program.

In addition, Rodolfo said the domestic motor vehicle industry has developed new capabilities in, among others, big volume parts like body shell in large plastics, which are key contributors to the high import logistics cost in a completely knocked down manufacturing operation.

As the pandemic had hampered the operation of the MMPC and TMPC, the BOI supported the call of the participants

for a three year extension of the program.

Rodolfo said that part of the proposal is for the TMP

and MMPC to produce another model under the program.