Connect with us

Hi, what are you looking for?

Captain Of Success
Top Stories

Stock Markets

CAMPI backs law to formalize auto incentives

USERTRMK-FREEPIK

THE Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said the government should enshrine in law a car manufacturing incentive program to attract more car manufacturers.

“We want consistent policy implementation. Incentives like the Comprehensive Automotive Resurgence Strategy (CARS) program, which was an executive order, should be legislated,” CAMPI President Rommel R. Gutierrez.

“This will make incentives long term. Investments require long-term planning and commitments on both the government and the private sector,” he added.

He said that the CARS program was proven effective due to the commitments on both sides and the policy’s performance-based provisions.

Created through Executive Order (EO) No. 182 by President Benigno S. Aquino III, the CARS program sought to encourage domestic assembly of selected mass-market models to create jobs and spur the growth of the supplier ecosystem.

The EO set aside three slots for car manufacturers, who were required to produce at least 200,000 units of an enrolled model in order to avail of incentives.

Only two slots were filled: Toyota Motor Philippines Corp., which produces the Vios sedan, and Mitsubishi Motors Philippines Corp., which manufactures the Mirage hatchback and Mirage G4 sedan.

According to Mr. Gutierrez, turning the incentive program into a law will help attract more manufacturers to assemble domestically.

“Once it is legislated. It will be more certain, and it will give stability. Because even the budget will be identified,” he said.

“In fact, a bill has already been sponsored by Rep. Rufus B. Rodriguez, but it needs a Senate counterpart,” he added.

On Aug. 30, 2022, Mr. Rodriguez filed House Bill (HB) No. 4206, or the Philippine Motor Vehicle Manufacturing Act.

It has since been replaced by a substitute measure, HB 11402, which was approved on second reading on Feb. 4.

The government is planning to implement a new auto industry revival program through a joint administrative order.

Expected to be issued within the year, the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program is expected to cover the production of three specific models of four-wheeled internal combustion engine vehicles.

Under the new program, the participating carmakers will have to commit to domestically assemble 100,000 units.

The RACE program was among the Department of Trade and Industry’s budgeted items in the General Appropriations Act for 2025. It was allotted P250 million. — Justine Irish D. Tabile

    You May Also Like

    Stock Markets

    PHILIPPINE President Ferdinand R. Marcos, Jr. met with Laos Prime Minister Sonexay Siphandone on May 26 as part of the 46th ASEAN Summit and...

    Stock Markets

    1 of 3 CHINESE AUTO giant Geely Auto recently arranged an international media tour predicated on the Auto Shanghai 2025. In a release, the...

    Finance

    Electric vehicle (EV) sales in the UK continued to surge in April, with battery electric cars claiming more than one in five new registrations,...

    Finance

    Tesla has encountered legal headwinds in its push to trademark the terms “Robotaxi” and “Cybercab”, dealing a blow to the company’s highly anticipated autonomous...

    Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.