Parts supply projects worth a total of P1.28 billion have been approved in support of the Comprehensive Automotive Resurgence Strategy (CARS) program, the Board of Investments (BoI) said.
The projects involve suppliers of Toyota Motor Philippines Corp. (TMPC): Valerie Product Mfg. Inc. (P94.5 million) and Technol Eight Phils. Corp. (P495.9 million), which will manufacture body shell parts; and Manly Plastics Inc. (P520 million) and Toyota Boshoku Phils. Corp. (P167.2 million) that will produce consoles and door trims, respectively, for the Vios subcompact under the Body Shell and Large Plastics (BSLP) category of the CARS program.
Each parts maker will churn out capacity equivalent to 230,000 units over the six-year life of the registered car model beginning August 2018.
TMPC will also be investing P1.98 billion for the production of body shells and large plastic parts in-house. All told, TMPC and its parts suppliers will be investing P3.26 billion in the CARS program, the BoI said.
“With more investment opportunities from its supplier network and other related manufacturing activities, industrial linkages are strengthened and [will]boost the capacity of Toyota to meet the growing demand of its best-selling vehicle,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said.
The CARS program aims to stimulate domestic automobile production by providing incentives to qualified manufacturers — who have to produce a minimum 200,000 units — over a six-year period.