CARS Program: Ready to take the automotive industry to the fast lane
The Philippines in recent years has been experiencing continued economic growth with GDP averaging at 17% percent in the last 4 years. With per capita GDP hovering at US$3,000, the effect of the economic growth is best seen in the unprecedented double digit annual growth of the automotive industry in the last 5 years. The challenge, therefore, is how the domestic automotive manufacturing industry will be able to meet the demands of motorization.
At its current state, the Philippine automotive manufacturing industry is unable to compete within the ASEAN region. The production cost handicap estimated at Php 67,500 to Php 81,000 (estimated at $1,500 to $1,800 per unit) is comprised largely of high import logistic cost and unit production cost. Addressing the handicap is Executive Order No. 182, s. 2015 or the Comprehensive Automotive Resurgence Strategy (CARS) Program. Continue reading here.