Toyota and Mitsubishi risk missing out on Philippine auto perk

$180m tax breaks in jeopardy as pandemic disrupts output targets

20200708N Toyota

The coronavirus lockdown in the Philippines has cast a shadow over Toyota's efforts to produce enough vehicles to qualify for $180 million in tax savings. (Photo courtesy of Toyota)

JUN ENDO, Nikkei staff writer

MANILA -- The coronavirus pandemic has left two Japanese automakers in danger of not qualifying for a Philippine government program that rewards manufacturers for meeting production minimums.

The CARS program offers up to 9 billion pesos ($181 million) in tax incentives per vehicle model as long as 200,000 units are assembled in six years. CARS was launched in 2016 as a way to develop the domestic auto industry.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.