Government assurance on funding for the Comprehensive Automotive Resurgence Strategy (CARS) program is expected to sustain investor confidence and support the domestic automotive industry.
The Philippine Parts Makers Association (PPMA) said the availability of P4.23 billion for the CARS program this year is “an important step in sustaining investor confidence and reaffirming the government’s commitment to revitalizing domestic automotive manufacturing.” The allocation, it added, “is vital in supporting the continued operations and production plans” of vehicle manufacturers and local suppliers.
“This resolution strengthens policy stability, protects jobs and helps preserve the manufacturing ecosystem that the Philippines has worked hard to build over the years,” the group said.
Finance Secretary Frederick Go earlier announced that funding for CARS, previously vetoed in the national budget, has been finalized, with details to be released by the Department of Budget and Management. The program provides investment support and production incentives to automotive firms. As of 2025, P1.44 billion of its P5.43-billion total budget has been released.
The PPMA also urged the immediate rollout of the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which requires about P125 million. “PPMA believes RACE is the natural complement to CARS,” as it strengthens the supply chain through investments in tooling, technology upgrades, certifications, productivity, and local content expansion.
“These are critical interventions that enable more Filipino parts makers to participate meaningfully in local vehicle production and compete within the ASEAN region.”
The group likewise highlighted the “importance of the upcoming Electric Vehicle Incentive Strategy (EVIS) program,” noting that local manufacturers can supply a wide range of EV components. “Strengthening the local parts sector today through programs like RACE will ensure that the Philippines is ready to capture these EV opportunities as EVIS accelerates industry transformation.”
Separately, Federation of Philippine Industries chairperson Beth Lee welcomed the development as a “vital step toward rebuilding investor confidence and honoring commitments to manufacturers.”
“Automotive manufacturing is about more than vehicles — it drives jobs, technology transfer, and the growth of our local parts industry,” she said. “Only by sustaining industrial programs with credibility can the Philippines position itself as a trusted destination for long-term manufacturing investments.”
TOYOTA PHOTO