Mitsubishi Motor Philippines Corp. (MMPC) is seeking a second iteration of the Comprehensive Automotive Resurgence Strategy (CARS) citing its benefits to the industry and the economy.
Imelda Abadilla-Brown, first vice president of MMPC, told reporters the company is hopeful government will give them at least five years of extension to comply with the volume requirement of the program when it lapses in 2024. CARS grants incentives to MMPC for Mirage, one of two models enrolled in the program.
“More than (five years) is very much welcome. The CARS program is something that the industry needs. It’s a very good program. It’s very beneficial to the society and it generates jobs. We want to preserve jobs… we want to continue producing the Mirage. It’s not just about getting the volume, but (we want to) continue supporting our local suppliers. The CARS program should not be a one- time program. We hope to be able to continue, enhance this program, sustain it. In fact, we are asking for a CARS 2,” said Abadilla-Brown on the sidelines of MMPC’s expo in World Trade Center last week.
Abadilla-Brown said MMPC projects to hit the 100,000- unit milestone before the end of the year and start availing of the volume incentives granted by CARS. It has produced more more than 90,000 to date.
Abadilla-Brown said MMPC will ramp up production of the Mirage to meet the volume requirement of 200,000 units within the planned five-year extension.
The plan is to produce more than 20,000 units by next fiscal year. From from January to June, production hit more 14,167 units units, significantly higher than the 9,230 units produced in 2022.
According to Abadilla-Brown, MMPC is studying the possibility of adding more models for local assembly, including Xpander, but that it needs CARS-like support from government.
“If there’s going to be a part two (of CARS)… for an upcoming model that would be very good,” said Abadilla- Brown.
MMPC currently assembles the Mirage and the L300 in Santa Rosa, Laguna.
The CARS program was promulgated by Executive Order No. 182 in 2015 to encourage local production of vehicles. Two of the three slots were filled by MMPC and by Toyota Motor Philippines with Vios as the enrolled model.
There are two kinds of incentives under CARS: fixed investment incentives which required participating car manufacturer to invest in body shell and large plastic parts and components and; production volume incentives which required the assembler to produce at least 200,000 units of an enrolled model in order to avail of incentives. Production of the enrolled model is eligible for P9 billion worth of fiscal support.
As CARS nears the end of its six-year run, the government plans to extend the program for five years to give the two participants more time to comply with the production volume requirement.
Sales of Mirage and Vios the past three years have been low due to the pandemic. An executive order on the extension is yet to be issued.
