The Department of Trade and Industry has ruled out any possible amendments to the rules governing the Comprehensive Automotive Resurgence Strategy (CARS) program, as it is currently in talks with a “serious player” who could fill in the third and last slot provided in the said incentive scheme.
“We are looking at a third player that would not require us to tweak the existing (rules of the CARS). There is a mutual interest and (this player) can be a highly feasible participant. But we’re still in preliminary talks,” Trade Secretary Ramon Lopez said.
There had been talks earlier that the DTI was open to tweaking the rules and incentives to fill in the third and last slot provided under the CARS program, a stimulus package that offers a total of P27 billion worth of incentives for vehicle assemblers that will produce 200,000 units of a single model over a six year period, among other requirements.
A ranking trade official earlier said the DTI was eyeing one of the biggest automotive importers in the country to be the third participant, after the company was reported to be looking at the Philippines as a possible production hub in the region.
“Given the strong growth of the economy and the continued consumer confidence as indicated by purchases of consumer durables and vehicles, (the Philippines) has attracted the serious consideration of global players who are already present in the country but in a limited way, meaning through marketing, selling and distribution,” a source privy to the matter told the Inquirer.
The source noted that the industry player wanting to set up an assembly operations in the Philippines could be a likely candidate for the CARS Program as the said company, given its strong domestic sales, could compete against Japanese automotive brands dominating the local market.
The source, however, declined to identify the said vehicle importer. But earlier this year, Hyundai Asia Resources Inc. (Hari), the exclusive distributor of Hyundai vehicles in the country, reportedly said the Philippines had been short-listed by the parent firm as among the possible future sites of either an assembly operations or an automotive parts manufacturing facility.
This was announced on the opening day of the 2016 Manila International Auto Show (MIAS) held in April this year. As of end June, sales of Hyundai vehicles reached 16,362 units, up 53 percent from a year ago. Hari also announced in February that it would start selling this year Category 3 and 4 Hyundai trucks and buses in the country.