Toyota Motors Philippines Corp. and Mitsubishi Motors Philippines Corp. made official their interest to further invest in the Philippine automotive sector with a separate filing of accreditation to the Comprehensive Automotive Resurgence Strategy program of the government.
Toyota first vice president for public and corporate affairs Rommel Gutierrez confirmed the company’s application to join the automotive incentives program.
The Philippines’ dominant automotive company committed to produce the Vios model, its best-selling compact sedan in the Philippines.
Mitsubishi also filed an application to join CARS to support the local automotive manufacturing industry.
“Mitsubishi Motors has been engaged in production and sales business in the Philippines for over 50 years. The Philippines is one of the most important markets for us,” Mitsubishi Japan chairman and chief exectuive Osamu Masuko said in a recent briefing.
“It is indeed a great pleasure for Mitsubishi Motors to be able to contribute to the automotive industry of the Philippines facing a new development phase and also further make contribution to the economic growth of the Philippines even in the slightest terms,” he said.
Mitsubishi earlier said auto manufacturing in the Philippines would require an P4.3 billion in initial capital expenditure. The investment will include the creation of a new stamping plant and capacity expansion.
The company will enroll the Mirage and Mirage G4 (Attrage in some markets) and start producing the vehicle from the beginning of 2017. Preparations for expanded production began in January 2015.
The company plans two shifts of 50,000 units each in its Sta. Rosa plant to support the increased assembly operations. Mitsubishi is currently producing the L300 and Adventure models in the Philippines.
The company is looking at the huge potential for sales growth, after Philippine market recently reached the stage of motorization with a base of over 100 million population.
CARS provides fiscal and non-fiscal incentives worth P27 billion to three participating car makers, which are expected to produce at least 200,000 units each over six years.
Participating car companies may start enjoying the incentives on the poroduction of the 100,001th unit.
Car sales jumped 21.7 percent year-on-year in February, sustaining the double-digit growth in January and putting the automotive industry on track to setting a record sales of 350,000 in 2016.
The Chamber of Automotive Manufacturers of the Philippines Inc. and Truck Manufacturers Association said their members sold 25,150 vehicles in February, up from 20,663 units delivered a year ago. The figures exclude the sales of industry group Association of Vehicle Importers and Distributors, which has its own report.
Campi said the February sales were also 5.6 percent higher than the January volume of 23,808 units.
“So far, it has been a good start for the auto industry. Demand for mobility continues and industry players are ready to respond to the needs and demands of consumers” said Campi president Rommel Gutierrez.