THE Board of Investments (BOI) targets to release the implementing rules and regulations (IRR) of the Comprehensive Automotive Resurgence Strategy (CARS) Program next month so that fiscal preparations can be made to unlock the incentives offered under the program.
President Benigno Aquino 3rd approved last month Executive Order (EO) 182 implementing the CARS Program, which aims to encourage Philippine car makers to scale up and invest in parts manufacturing.
Eventually, the program intends to boost motor vehicle manufacturing and create more jobs for Filipinos. It is estimated that 200,000 jobs will be created with the implementation of the program.
“The program aims to jumpstart the revitalization of the country’s automotive industry, improve its competitiveness and elevate the country into an auto manufacturing hub in the region,” said Adrian Cristobal Jr., Department of Trade and Industry (DTI) undersecretary and BOI managing head.
With the implementation of the CARS program, the Philippines expects to attract more than P27 billion in new parts manufacturing investments, produce at least 600,000 vehicles and generate a total economic activity estimated to be worth P300 billion over the life of the program. The resulting contribution to gross domestic product (GDP) is estimated at about 1.7 percent, according to the DTI.
In drafting the implementing rules and regulations, the BOI consulted with carmakers and parts manufacturers, including members of the Chamber of Automotive Manufacturers of the Philippines, Inc.
(CAMPI), Philippine Automotive Competitiveness Council, Inc. (PACCI), Federation of Automobile Industry Philippines, Truck Manufacturers Association, Inc. (TMA), and Motor Vehicle Parts Manufacturers Association of the Philippines (MVPMAP).
During a briefing with carmakers and parts manufacturers on the features and mechanics of CARS, Cristobal said, “the CARS program is only one of the strategies of the roadmap. Let us not be fixated on the EO, rather, let us also work together to implement the other non-fiscal measures of the automotive industry roadmap.”
The auto industry roadmap, crafted by industry stakeholders in partnership with the BOI, was completed last 2014. The roadmap identifies the industry’s vision and goals as well as interventions and initiatives to achieve competitiveness.
The crafting of industry roadmaps is private sector-led while the BOI, lead agency for industry competitiveness, provides the enabling environment which includes streamlining of registration processes, and business-matching activities among investors and local parts makers.