With the Comprehensive Automotive Resurgence Strategy (CARS) Program, which was signed into an Executive Order by President Aquino in May 29, 2015, already in place, auto parts for your vehicle may soon become more easily acquired and cheaper too.

Local auto parts makers are looking to sign at least 31 joint venture deals and technical agreements with foreign car parts suppliers in order to boost auto parts manufacturing and auto assembly production in the country.

Under CARS, automakers gain fiscal and non-fiscal incentives from the government by locally sourcing auto parts such as body shell assembly, large plastic assemblies and investing in shared testing services facilities among many others.

In other words, automakers are to bring their foreign suppliers into the country through joint ventures or technical agreements with local auto parts makes.

This joint venture agreement entails financial and technical investment by the foreign counterpart in order for the local partner to gain the production facility and technology to manufacture parts that are not yet available in the Philippines.

According to Philippine Parts Maker Association, Inc. (PPMA) President Ferdinand Raquelsantos, a local auto parts maker is set to sign a technical agreement for a metal body shell production with a Japanese parts supplier late this month.

The PPMA expects more deals of this kind to be inked with Japanese and Thai auto parts suppliers within the year.

Estimates project the earnings and sales of the local auto parts industry to reach Php 240 billion by 2017 due to the positive influence of the CARS program.

The Department of Trade and Industry (DTI) also expects an increase in total auto parts export revenues. Exporting auto transmission and gear parts for Toyota, Mitsubishi, and Suzuki, auto parts export revenue accounted for 7-percent of total revenues in 2014.

Data from the Philippine Statistics Authority that prior to CARS, the local automotive industry had a total production value of Php321.44 billion. That’s good enough for 8-percent of the total manufacturing output value.