CAMPI backs law to formalize auto incentives

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It has since been replaced by a substitute measure, HB 11402, which was approved on second reading on Feb. 4.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