BOI eyes P1.6-B investments from car parts makers

MANILA, Philippines – The Board of Investments expects new investments from car parts makers to significantly grow given the start of the Comprehensive Automotive Resurgence Strategy (CARS) program.

According to the BOI, about P1.6 billion in fresh investments are expected from car parts makers to support the respective investments of participating car makers Mitsubishi Motors Philippines Corp. and Toyota Motor Philippines Corp.

“The CARS program is now ready to take on the development of the automotive parts manufacturing industry,” the BOI said.

Toyota and Mitsubishi will initially be investing a total of P7.5 billion to produce their respective enrolled models – the full model change Vios and the Mirage/Mirage G4.

These investments will create some 14,000 new jobs, with salaries and wages amounting to at least P18 billion over a six-year period, the BOI said.

Aside from car parts makers, the implementation of the CARS program is also expected to benefit the chemicals, metalworking, tool and die, plastics, electronics, rubber, glass, and textile sectors.

The Philippine Parts Maker Association (PPMA) has expressed full support and commitment to participate in the CARS program, the BOI said.

“Supported by the government through a fiscal-capped, time-bound and performance-based program, the local parts makers see an opportunity to expand and develop their capabilities,” the agency added.