The Philippine Board of Investments (BOI) announced the approval of Mitsubishi Motors Philippines Corporation and Toyota Motors Philippines Corporation as participating car makers of the country’s Comprehensive Automotive Resurgence Strategy (CARS) Program.
Trade Assistant Secretary Rafaelita Aldaba said that the CARS Program aims to raise local vehicle manufacturing to expand the country’s auto parts making capabilities. CARS is expected to attract PHP 27 Billion in fresh investments, manufacture 600,000 more vehicles, and add PHP 300 Billion to the domestic economy (equivalent to 1.7 percent of gross domestic product).
Mitsubishi applied to produce 200,000 units of the Mirage/Mirage G4 while Toyota applied for the production of 230,000 units of an all new (full model change) Vios. As participating carmakers, they are required to localize the production of body shell and large plastic parts and components.
Toyota and Mitsubishi’s initial investments totaling P8 billion will create some 14,000 new jobs, salaries and wages of which will also amount to Php8 billion over a six year period. Parts makers who will be working with Toyota and Mitsubishi are expected to generate over Php18 billion fresh investments for the country.
The CARS Program also expects total government revenues to amount PHP408 billion in import duties, VAT, excise tax, income tax, withholding taxes. Direct purchases of raw materials for parts making will amount to Php63 billion.