CARS renewal to draw in more investors–Toyota
The local unit of Japanese car maker Toyota Motor Corp. said that it sees more investments in automotive manufacturing coming to the Philippines, indicating renewed optimism for the industry with the announcement of a five-year extension plan of the government’s incentive scheme for vehicle manufacturers.
Toyota Motor Philippines Corp. (TMPC) first vice president Rommel Gutierrez told the Inquirer on Saturday that the extension of the Comprehensive Automotive Resurgence Strategy (CARS) program is a “very welcome development” for them, adding that they appreciate the continuing government support for the sector.
“CARS program is a significant government support as it helps the industry, among others, maintain and promote employment not only to the manufacturers but also parts suppliers and other allied industries,” Guiterrez said in a mobile phone message.
“With continued industry-government collaboration, we can further attract more investments for auto manufacturing which is a significant contributor to the Philippine economy,” he added.
TMPC, along with the Philippine unit of the Mitsubishi Group, are participants in the P27-billion CARS program which was signed back in 2015.
Under the agreement, both were required to locally produce 200,000 units of the Toyota Vios and the Mitsubishi Mirage models within six years after starting production in 2018.
Based on a six-year life of CARS, the government is expected to have an estimated net revenue of P18.77 billion coming from income tax, value-added taxes and withholding tax payments.
Earlier in February, Guiterrez said that the local production of a new Tamaraw-inspired vehicle could begin within five years, hinting that this new generation of light commercial vehicle unit (LCV) may soon be available in the market and plying Philippine roads.
Toyota currently has a strong lead in the Philippine market, with a current market share of almost 50 percent, way ahead of its competitors in the local scene.
According to automotive industry groups Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association, Toyota had a 49.38 percent market share in 2022, selling 174,106 vehicle units during the year.
The closest competitor, Mitsbishi, had a 15.09 percent share, an equivalent of 53,211 vehicle units sold in the same period.