Board of Investments OKs P1.28 B auto parts projects

MANILA, Philippines — The Board of Investments (BOI) has approved P1.28 billion worth of projects from four parts suppliers of Toyota Motor Philippines Corp. for the Vios model under the Comprehensive Automotive Resurgence Strategy (CARS) program.

The BOI said Valerie Product Mfg. Inc. and Technol Eight Phils. Corp. are investing P94.5 million and P495.9 million, respectively, to manufacture body shell parts, while Manly Plastics Inc. and Toyota Boshoku Phils. Corp. are pouring in P520 million and P167.2 million, respectively, to produce consoles and door trims.

The parts makers will each be producing capacity equivalent to 230,000 units over the six-year life of the registered car model. Production period will be from August 2018 to August 2024.

Under the CARS program, continued support is provided to the parts manufacturing activities of the participants. It also allows for the outsourcing of parts to be owned by the registered carmaker.

Toyota Motors Philippines, for its part, is investing P1.98 billion in producing body shells and large plastics in-house. Overall, Toyota and its parts suppliers are investing P3.26 billion in the CARS program.

“With more investment opportunities from its supplier network and other related manufacturing activities, industrial linkages are strengthened and boost the capacity of Toyota to meet the growing demand of its best-selling vehicle,” BOI managing head Ceferino Rodolfo said.

Rodolfo remains confident CARS participants will continue to attract additional investments and stimulate demand that will boost the local automotive industry and position the country as an automotive manufacturing hub in the ASEAN region.

Under Executive Order 182, the thrust of the CARS program is to provide time-bound and output or performance-based fiscal support to attract strategic investments in the manufacturing of motor vehicles and parts.

Total fiscal support for the duration of the CARS program is a maximum P27 billion, with each enrolled model qualified to a fiscal support of up to P9 billion.

These are obtained in the form of fixed investment support, 40 percent in cases of parts and shared testing facility, and 60 percent for production volume incentive.