Participants of the Comprehensive Automotive Resurgence Strategy (CARS) could have the option to introduce a model change or an entirely new model of their enrolled vehicles in complying with the volume requirement of the scheme for the next five years.
Ceferino Rodolfo, managing head of the Board of Investments (BOI) said this is one of the points that the agency is considering for the compliance of Toyota Motor Philippines Corp. and Mitsubishi Motor Philippines Corp. (MMPC) on the volume requirement of CARS which has been extended by five years.
“The condition we have set when we presented (the proposed extension) to the President is that we stick to the notional budget (of CARS). That we will only give out the remaining unutilized budget (of incentives) to the two players. We will not add to that anymore,” Rodolfo said.
He said TMP is likely to meet the volume requirement within the timeframe still with Vios as entry to CARS but expressed apprehension if MMPC will be able to comply with its Mirage.
CARS gave participants incentives of P9 billion each for investing in large parts and for producing and selling 200,000 units each within the six-year timeframe of the program.
But while both TMP and MMPC were able to meet the first hurdle, the pandemic made it difficult for the two companies to sell the required volume.
It is also important to note the validity of CARS coincided with the model life of the vehicles enrolled, which is six years.
“We can consider a big model change or a new model because by this time, Vios and Mirage are near the end of their model life,” Rodolfo said.
When asked if the two participants have indicated interest to do enroll a new model, Rodolfo declined to comment. Irma Isip
