Trade and Industry Secretary Ramon M. Lopez said the finished output of the CARS-like manufacturing program for the eco-friendly public utility vehicles (PUV) should be priced lower than P1 million.
Lopez told reporters last week that the final price would depend on the amount of subsidy that would be given for the program, noting that this was still under discussion.
The vehicle is part of a bigger government initiative, known as the PUV modernization program that was formally launched last week, aiming to replace more than 200,000 jeepneys across the country in three years time.
The Board of Investments (BOI), which Lopez chairs, is crafting a manufacturing program that would supply the replacements for the traditional but inefficient transport units.
“[The new PUV] has to be lower than what is currently available. It should be below P1 million. P1 million is already expensive for a commercial vehicle. With the acquisition costs to be supported by the financial institutions, it would be light for [drivers],” he said.
Lopez previously said that they expected to have the concept vehicle for the manufacturing program ready before the year ends.
With discussions still ongoing, only a general overview of the manufacturing scheme has been provided.
According to BOI managing head Ceferino Rodolfo, it would involve Filipino firms that would be selected to locally produce the standardized vehicle units although some components might have to be imported.
Officials often compared this to the Comprehensive Automotive Resurgence Strategy (CARS) Program, a P27-billion government initiative that would pick three car manufacturers to locally produce a combined 600,000 units within a six-year period. —ROY STEPHEN C. CANIVEL