Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2050 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
The motor vehicle manufacturing industry plays a vital role in any country’s economic 
development and industrialization. It creates job opportunities, attracts investments, and 
promotes innovation. In the Philippines, numerous local assemblers and manufacturers export 
vehicles to neighboring countries.  
To spur domestic manufacturing, the government promulgated Executive Order No. 
182 or the Comprehensive Automotive Resurgence Strategy Program (CARS) in 2015. 
However, the gains from this program slowed down because of the harsh effects of the 
COVID-19 pandemic. As such, a renewed strategic support is needed. 
This proposed measure establishes a six-year National Motor Vehicle Manufacturing 
Development Plan which shall be aligned with the Philippine Development Plan and the 
Philippine Export Development Plan; creates the Motor Vehicle Industry Development Office  
and the Motor Vehicle Manufacturing Development Council; and prioritizes domestically 
manufactured vehicles in government procurement. It also provides fiscal incentives to 
support motor vehicle and motor vehicle component manufacturing industries. 
In 2019, the Land Transportation Office registered 16,443 new vehicles, worth an 
estimated P8 billion. According to the Observatory of Economic Complexity, in 2024, the 
Philippines exported approximately $3.64 million worth of cars mostly to countries such as the 
United Arab Emirates, Cambodia, and Thailand. However, the Philippines imported 
significantly more, with total car imports amounting to $4.45 Billion, making cars the 4th most 
imported products in the Philippines.1 Based on this, the demand for automobiles can serve 
as a stimulus to our domestic car manufacturing should domestically manufactured vehicles 
be prioritized. 
Through this proposed measure, we hope to increase automotive exports and 
decrease import dependency, boost the economy, generate local employment, and make the 
Philippines a key market of resilient, efficient, and sustainable vehicles worldwide.   
This is a refiled bill from the 19th Congress, and was approved on third and final 
reading and transmitted to the Senate. Thus, in light of the foregoing, the immediate passage 
of this bill is earnestly sought. 
1 The Observatory of Economic Complexity. Bilateral trade profile: Cars – Philippines  https://oec.world/en/profile/bilateral-
product/cars/reporter/phl 
July 16, 2025
6:17 pm


HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2050 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT STRENGTHENING THE COMPETITIVENESS OF THE PHILIPPINE MOTOR 
VEHICLE MANUFACTURING INDUSTRY 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1. Title. – This Act shall be known as "The Philippine Motor Vehicle Manufacturing 
Industry Act.” 
SECTION 2. Declaration of Policy. – The State shall develop the national economy by 
promoting industrialization through competitive industries and by encouraging the participation 
of private enterprise. 
Recognizing that the Philippine Motor Vehicle Manufacturing Industry forms the core 
of the country's industrial strength and plays a vital role in economic development and nation-
building, the following are the declared policies of the State: 
(a) The State shall develop a comprehensive policy that shall accelerate the sound
development of the Philippine Motor Vehicle Manufacturing Industry thereby
contributing to industrial capital formation, technology transfer, technical skills
development, and employment generation;
(b) The State shall ensure a balanced transition to open trade by fully developing the
competitive capacities of the Philippine Motor Vehicle Manufacturing Industry and
promoting greater participation in global value chains;
(c) The State shall promote the maximum scale integration of vehicle manufacturing
and the manufacture of its parts and components; and
(d) The State shall integrate motor vehicle manufacturing into the overall transport
sector policy to encourage objective market conditions for locally-produced
vehicles in the expansion and upgrading of the country's vehicle fleet.
SECTION 3. Scope. – This Act shall apply to the range of activities in the Motor Vehicle 
Manufacturing Industry as defined under Section 4(e). 


 
 
SECTION 4. Definition of Terms. – As used in this Act, the following terms are defined as 
follows: 
 
(a) Board of Investments (BOI) refers to an attached agency of the Department of Trade 
and Industry created under Republic Act No. 5186, otherwise known as the 
"Investment Incentives Act"; 
 
(b) Department of Trade and Industry (DTI) refers to the government agency created 
pursuant to Executive Order No. 133, series of 1987, "Reorganizing the Department 
of Trade and Industry, its Attached Agencies, and for Other Purposes"; 
 
(c) Fiscal Incentives Review Board (FIRB) refers to the Government Agency reconstituted 
under Republic Act No. 11534, otherwise known as the Corporate Recovery and Tax 
Incentives for Enterprises Act (CREATE), which administers the grant of tax incentives 
to registered business enterprises; 
 
(d) Motor Vehicle Manufacturing Industry refers to enterprises that are engaged in the 
manufacture of brand new motor vehicles, bodies (coachwork) for motor vehicles, and 
parts, components, accessories and systems of motor vehicles; 
 
(e) National Transport Policy refers to the long-term development framework for the 
transportation sector formulated by the National Economic and Development Authority 
(NEDA), which shall be used by stakeholders as guidance in transport development, 
management, operations and use; 
 
(f) Philippine Development Plan (PDP) refers to the master plan for economic 
development implemented by the NEDA, which identifies priority sectors with the 
greatest potential to contribute to realizing the PDP goals for the next six (6) years and 
defines the programs, policies, strategies and action plans to attain economic 
development goals; 
 
(g) Philippine Export Development Plan (PEDP) refers to the export development plan 
prepared by the DTI, which defines the country's annual and medium-term export 
thrusts, strategies, programs and projects jointly implemented by the government, 
export and concerned sectors; and 
 
(h) Strategic Investments Priorities Plan (SIPP) refers to the overall plan formulated by the 
BOI, in coordination with the FIRB, Investment Promotion Agencies, and other 
government agencies pursuant to the guidelines set forth in the CREATE Law. 
 
 
ARTICLE II 
ORGANIZATION, INSTITUTIONAL SUPPORT, AND STRATEGIES 
 
SECTION 5. Lead Agency. – The DTI through the BOI shall be the lead agency mandated to 
implement the provisions and attain the objectives of this Act. 
 
In order to strengthen its capacity to implement this Act, the DTI is hereby authorized 
to create the Motor Vehicle Industry Development Office (MVIDO) in the BOI, which shall be 
headed by a Director. The Secretary of the DTI shall determine the organizational structure 
and staffing pattern of the motor vehicle industry development office, in accordance with the 
revised compensation and position classification system subject to the evaluation and 
approval of the Department of Budget and Management and in compliance with the civil 
service laws, rules and regulations, and other pertinent laws. 


 
 
SECTION 6. National Motor Vehicle Manufacturing Development Plan. – The President 
of the Republic of the Philippines shall approve a six-year National Motor Vehicle 
Manufacturing Development Plan, hereinafter referred to as the "Plan", prepared by the BOI 
in consultation with concerned stakeholders and endorsed by the Motor Vehicle Manufacturing 
Development Council. 
 
The Plan, which shall be integrated into the PEDP and the PDP, shall define the 
Industry's annual and medium-term manufacturing and export targets, key industry issues, 
and programs and strategies to support manufacturing and export thrusts. The Plan shall also 
identify priority development products and/or niche models, which shall be characterized by 
high manufacturing value-added and with high potential for economic efficiency, as the primary 
focus of incentives. Annual updates shall be done to monitor the results and targets identified 
in the Plan. 
 
SECTION 7. Motor Vehicle Manufacturing Development Council. – For the purpose of 
coordinating the formulation and implementation of policy reforms to support the Plan, the 
Motor Vehicle Manufacturing Development Council, hereinafter referred to as the "Council", 
shall be created to act as the central planning, coordinating and monitoring body and national 
advisory committee for the comprehensive and integrated policy on motor vehicle 
manufacturing industry development. 
 
SECTION 8. Composition of the Council. – The Council shall be composed of the following: 
 
(a) Secretary of the DTT as Chairperson; 
(b) Vice Chairperson and Managing Head of the BOI and Undersecretary for Industry 
Development and Trade Policy of the DTI as Co-Vice Chairperson; 
(c) Director General of the National Economic Development Authority; 
(d) Secretary of the Department of Finance; 
(e) Secretary of the Department of Environment and Natural Resources; 
(f) Secretary of the Department of Energy; 
(g) Secretary of the Department of Transportation; 
(h) Secretary of the Department of Science and Technology; 
(i) Secretary of the Department of Public Works and Highways; 
(j) Commissioner of the Commission on Higher Education; 
(k) Commissioner of the Philippine Competition Commission; 
(l) Director General of the Technical Education and Skills Development Authority; 
(m) Four (4) representatives from the private sector, one of whom shall be appointed as 
Co-Vice Chairperson: Provided, That the representatives shall have a proven track 
record of direct involvement in manufacturing and the development of the motor vehicle 
industry; and shall be nominated in a process determined by key industry players 
and/or organizations representing the motor vehicle manufacturing industry; and 
(n) Two (2) representatives from the academe/research community: Provided, That the 
representatives shall each be of recognized competence in fields of: (1) automotive 
industrial, economic and trade policies; and (2) automotive engineering and 
technology. 
 
Except for the representatives from the private sector and academe/research 
community, any member of the Council may designate an alternate with a rank not lower than 
Undersecretary or its equivalent to represent their respective offices in the Council: Provided, 
That the designated alternate must be fully authorized to decide on behalf of the members. 
 
Upon the effectivity of this Act, the President of the Republic of the Philippines shall 
appoint the four (4) representatives from the private sector and the two (2) representatives 
from the academe/research who shall serve for a term of two (2) years. Only citizens of the 


 
Philippines shall be members of the Council. In case of vacancy, the appointed successors 
shall serve only the unexpired portion of the term of his predecessor. 
 
Other heads of executive agencies, private organizations, or individuals may be called 
upon by the Council to attend any Council meeting and to assist the Council to resolve issues 
and problems that concern their respective offices. 
 
 
Likewise, heads of executive agencies, private organizations or individuals shall 
respond to the queries of the Council within two (2) weeks from the time such queries are 
received. 
 
SECTION 9. Duties of the Council. – The Council shall function solely as a central planning, 
coordinating, and monitoring body and national advisory committee to the DTI as the lead 
implementing agency of this Act. 
 
The Council shall have the following duties: 
 
(a) Advise the DTI Secretary on the implementation of the Plan; 
 
(b) Periodically review and assess the performance of the Plan and prospects of the 
industry; 
 
(c) Provide a forum for discussing and proposing solutions to motor vehicle manufacturing 
industry-related problems, and emerging industry issues; 
 
(d) Recommend measures to support the positioning of the Philippines as an alternative 
production and export hub in the ASEAN region; 
 
(e) Recommend measures that would hasten the development of innovative technologies, 
niche products, and high-value-added manufacturing activities; 
 
(f) Recommend measures to increase the domestic market performance of the motor 
vehicle industry; 
 
(g) constraints in the development of the motor vehicle manufacturing industry; and 
 
(h) Perform such other acts as may be necessary or incidental to the exercise of its 
functions and discharge of its duties. 
 
SECTION 10. Meetings of the Council. – The Council shall meet at least once every quarter: 
Provided, That the Chairperson may convene the Council anytime whenever it is deemed 
necessary. 
 
The members of the Council shall not receive any compensation: Provided, That 
appointive members shall be entitled to per diem for each meeting actually attended at the 
rates to be formulated by the Council. 
 
SECTION 11. Operation of the Council. – The Council shall immediately convene and 
function one (1) month after the effectivity of this Act. 
 
The MVIDO created under Section 5 hereof shall act as the Secretariat for the Council. 
 
 
 
 


 
ARTICLE III 
INCENTIVES 
 
SECTION 12. Fiscal Incentives. – The Philippine motor vehicle and motor vehicle component 
manufacturing industries are hereby declared as priority investment sectors that shall form 
part of the country's four (4) successive SIPPs registered business enterprises of the 
Philippines and motor vehicle component industries shall be entitled to pertinent fiscal 
incentives granted under Title XIII (tax incentives) of the national internal revenue code of 
1997, as amended. 
 
SECTION 13. Industry Development Programs. – The DTI, through the BOI, in coordination 
with the FIRB and other pertinent government agencies, shall recommend an incentive 
strategy to the FIRB for approval, similar to Executive Order No. 182, series of 2015, otherwise 
known as the "Comprehensive Automotive Resurgence Strategy Program." 
 
The incentive strategy shall provide time-bound, targeted, performance-based and 
transparent fiscal support to integrated vehicle manufacturing and automotive supporting 
industries. Such programs shall be endorsed by the Council and approved by the President: 
Provided, That fiscal support granted under this Section shall be non-taxable, non-negotiable 
and applicable up to its full amount: Provided, further, That the budget for fiscal support shall 
be indicated in the annual National Expenditure Program and deemed automatically 
appropriated. 
 
In addition, the DTI, through the BOI and in coordination with the aforementioned 
government agencies, shall formulate and implement programs to support the development 
of motor vehicle manufacturing supporting industries. 
 
 
ARTICLE IV 
PRIORITIZATION OF DOMESTICALLY MANUFACTURED VEHICLES  
IN PUBLIC PROCUREMENT 
 
SECTION 14. Government Procurement of Motor Vehicles. – Subject to pertinent laws, 
rules and guidelines on the procurement of motor vehicles, the national government, including 
government-owned or -controlled corporations (GOCCs), and local government units (LGUs) 
shall prioritize the procurement of domestically manufactured motor vehicles which shall be at 
least fifty percent (50%) of their existing motor vehicle fleet, unless when no such motor 
vehicles meeting the required specifications and possessing the capabilities and desired 
quality of the procuring entity are manufactured or produced in the Philippines. 
 
Likewise, subject to existing laws, rules and guidelines on the lease or rental of 
vehicles, the national government, including GOCCs and LGUs shall give preference to the 
lease or rental of motor vehicles from service providers that can provide a motor vehicle fleet 
of at least fifty percent (50%) domestically manufactured vehicles acquired in the five (5) years 
preceding the date of procurement, unless no such vehicles meeting the required 
specifications and possessing the capabilities and desired quality of the procuring entity are 
manufactured or produced in the Philippines. 
 
 
ARTICLE V 
FINAL PROVISIONS 
 
SECTION 15. Implementing Rules and Regulations. – Within three (3) months after the 
effectivity of this Act, the DTI through the BOI shall, in consultation with all the stakeholders 
concerned, promulgate the Implementing Rules and Regulations of this Act. 


 
 
SECTION 16. Oversight Committee. – There is hereby created a Congressional Oversight 
Committee, hereinafter referred to as the Philippine Motor Vehicle Manufacturing Industry 
Congressional Oversight Committee (PMVMI-COC), with representations from the Minority, 
to be composed of five (5) members from the Senate, which shall include the Chairpersons of 
the Senate Committees on Trade, Commerce and Entrepreneurship; Public Services; and 
Appropriations, and five (5) members from the House of Representatives, which shall include 
the Chairpersons of the House of Representatives Committees on Trade and Industry; 
Transportation; and Appropriations. The PMVMI-COC shall be jointly chaired by the 
Chairpersons of the Senate Committee on Trade, Commerce and Entrepreneurship and the 
House of Representatives Committee on Trade and Industry. It shall meet at least every 
quarter of the first two (2) years and every semester of the third year after the approval of this 
Act to review the implementation thereof, and recommend the necessary remedial legislation 
or executive measures: Provided, That the PMVMI-COC shall cease to exist after five (5) years 
upon the effectivity of this Act. 
 
The Council shall submit the Plan and a report on the implementation of this Act to the 
PMVI-COC not later than the first day of December every year. 
 
The Secretariat of the PMVMI-COC shall be drawn from the existing personnel of the 
Senate and House of Representatives Committees comprising the PMVMI-COC. 
 
SECTION 17. Appropriations. – The amount necessary to carry out the initial implementation 
of this Act shall be charged against the current year's appropriations of the DTI. Thereafter, 
such amount as may be necessary for the continued implementation of this Act shall be 
included in the annual General Appropriations Act. 
 
SECTION 18. Repealing Clause. – Any law, presidential decree or issuance, executive order, 
administrative rule or regulation contrary to or inconsistent with the provisions of this Act is 
hereby repealed, modified or amended accordingly. 
 
SECTION 19. Separability Clause. – If any provision of this Act is held unconstitutional or 
invalid, the remainder of the Act or the provisions not otherwise affected shall remain valid and 
subsisting. 
 
SECTION 20. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,