The automotive industry took a huge hit because of pandemic, and the prolonged lockdowns greatly impacted local manufacturing. This put extra pressure on Toyota and Mitsubishi—the brands participating in the government’s Comprehensive Automotive Resurgency Strategy (CARS) Program.
It would be a no-brainer to give the carmakers an extension, as COVID-19 restrictions have made it all but impossible for them to meet their target outputs by their respective deadlines, which is 200,000 units by 2023 for Mitsubishi and 230,000 by 2024 for Toyota. It seems the Board of Investments (BOI) is ready to grant that extension, but it could come at a price of sorts.
According to a report by Manila Bulletin, the BOI is now considering granting Toyota and Mitsubishi the extensions. The automakers would have then to ‘give back’ by, say, enrolling another model in the program.
This supposed request for value addition from the BOI also considers the fact that the enrolled Toyota and Mitsubishi models are “close to the end of their model life,” or about five years for a car model.
The carmakers are reportedly still finalizing their offers. We can’t say for sure what new model Mitsubishi Motors Philippines will enroll in the CARS program, but we do have a guess on what Toyota Motor Philippines (TMP) might add: the all-new Vios. The current-gen model we have in our market is definitely on its way out, so it wouldn’t make sense for TMP to continue manufacturing that.
Then again, we could be wrong. Perhaps we’ll find out real soon. What do you guys think?