The government’s assurance of continued funding for the Comprehensive Automotive Resurgence Strategy (CARS) program underscores its commitment to strengthening the country’s electric vehicle (EV) industry.
Electric Vehicle Association of the Philippines president Edmund Araga said the funding guarantee is critical to the success of the Electric Vehicle Incentive Strategy (EVIS), which relies on a robust automotive manufacturing sector.
“The budget assurance for the program,” Araga said, “is extremely important because EVIS (electric vehicle incentive strategy) depends on a strong automotive manufacturing base.”
“You cannot scale electric mobility if the underlying ecosystem — vehicle assembly, parts manufacturing, and supplier development — is weakened,” he added in a statement on Friday.
Araga said continued support for the CARS program enhances investor confidence and signals that the Philippines remains a reliable destination for long-term EV investments.
The Department of Budget and Management, Department of Finance, and Department of Trade and Industry said in a joint statement on Jan. 19 that funding for the CARS program—previously vetoed under the 2026 national budget—will be sourced from the budgets of the DTI and the Board of Investments.
According to Araga, the country’s shift toward electric mobility requires stability across the broader automotive sector, noting that the transition “is not a standalone shift in technology, but a major industrial transformation that requires stability in the broader automotive sector.”
He said “EVIS is about building an entire electric mobility industry — not just importing EVs,” highlighting the importance of “continuity and credibility in government incentive programs.”
“When the government honors commitments under CARS, it sends the right signal: The Philippines can be trusted and industrial transformation under EVIS will be supported in a structured and responsible way,” Araga added.
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