First Philippine Local Auto Brand at Fingertips after Aquino Approves Implementation of CARS

06/02/2015 – Manila | Chinese and Taiwan’s dominance on low-quality auto-parts is threatened to end after President Benigno Aquino III approved the Executive Order to implement the Comprehensive Automotive Resurgence Strategy (CARS).

The program aims to revitalize the country’s automotive industry and could make the Philippines one of the major car and parts manufacturers in the region, the DTI report said.The program is designed to build and grow the parts-making capability of the auto industry, “for without a robust parts making industry, our car-making industry will remain uncompetitive.

The CARS program is about building capabilities and jobs to make our automotive manufacturing industry competitive in ASEAN,” said Trade Secretary Gregory L. Domingo.

The program also aims to create at least 200,000 direct and indirect local jobs especially in manufacturing sector.

“After thorough study, extensive stakeholder consultations and inter-agency coordination, the government’s CARS Program will be implemented with the signing of the EO,” Trade Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. said.

Cristobal also noted that the once the project started, consumers can expect lower prices on auto parts with higher quality compared to those imported from China and Taiwan.

“There are three types of auto parts in our market today with different levels of price and quality. Japan has the highest price but with the best quality, followed by made in Taiwan with sub par quality, and China with the worse quality”, auto-parts store owner Roberto Carpio said.

This is expected to attract more than P27 billion in new parts manufacturing investments, produce at least 600,000 vehicles and generate a total economic activity estimated to be worth P300 billion over the life of the program. The resulting contribution to gross domestic product (GDP) is estimated at about 1.7 percent, according to DTI.

The program can also attract Pinoys who are willing to assemble local auto brands when major parts are available locally with affordable prices, the report said.

/Fanny Jalacjac/ Assisted Press Manila

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