CARS 2.0 faces delays
The government’s new incentives program for automotive manufacturers would be delayed as rules for the P9-billion initiative were not yet ready.
Board of Investments Manufacturing Industries Service Acting Director Ronaldo Buluran on Monday said the joint administrative order (JAO) for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program would not be launched this month as originally planned, but efforts were underway to finalize it as soon as possible.
“We had our first meeting with the [Department of Budget and Management] and the [Department of Finance] last week. We’re still in the process of drafting the JAO on the RACE Program,” he said in a message sent to the Inquirer.
The RACE Program aims to sustain the growth of the local automotive sector by building on the success of the Comprehensive Automotive Resurgence Strategy (CARS), the P27-billion incentive program launched in 2015.
Incentives
Under CARS, Toyota and Mitsubishi were required to locally produce 200,000 units of the Toyota Vios and Mitsubishi Mirage within six years of starting production in 2018 to qualify for incentives.
The RACE program, on the other hand, seeks to support the production of three specific models of four-wheeled ICE (internal combustion engine) vehicles, requiring participating firms to manufacture 100,000 units to qualify for incentives.
A manufacturer is eligible for up to P3 billion.
