The Comprehensive Automotive Resurgence Strategy (CARS) may just be a little over two years old and only have two official participants in the program but it has already made a big impact on the Philippine economy.
Data gathered by Fitch Group’s BMI Research has projected the Philippines as the ‘fastest-growing’ automotive manufacturer among the countries in the Association of Southeast Asian Nations (ASEAN) from 2017 to 2021.
This is based on the report indicating that the country’s average auto production growth is 33.3% annually.
The government’s CARS program that provides fixed incentive and variable incentive support to automakers that can produce 200,000 units over a six-year period is credited for the industry’s growth.
“In the Philippines, we believe that the approval of Mitsubishi and Toyota as participating carmakers in the government's Comprehensive Automotive Resurgence Strategy program will help boost domestic passenger car production. Furthermore, we believe this growth in car manufacturing will help attract investment into the domestic automotive supply chain by creating opportunities for component suppliers,” BMI Research said in its report.
The research also shows that annual average growth in car demand over the next five years will be at 14.5%.