Manila: Government assurance for funding for the Comprehensive Automotive Resurgence Strategy (CARS) program will help sustain investors' confidence and encourage support for the domestic automotive industry. The Philippine Parts Makers Association (PPMA), in a statement over the weekend, said news about the availability of funding for the PHP4.23 billion CARS program this year is 'an important step in sustaining investor confidence and reaffirming the government's commitment to revitalizing domestic automotive manufacturing.' It said the allocation 'is vital in supporting the continued operations and production plans of the program's participants, including vehicle manufacturers and the local supplier base that supports them.'
According to Philippines News Agency, Finance Secretary Frederick Go earlier announced that CARS funding, which was vetoed in the national budget, has been finalized. Details will be announced by the Department of Budget and Management. The CARS program provides fixed investment support and production volume incentives to automotive firms. As of 2025, the government has released PHP1.44 billion of the program's PHP5.43-billion total budget.
The PPMA likewise backed the call for the immediate implementation of the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which needs a budget of around PHP125 million. 'PPMA believes RACE is the natural complement to CARS, as it strengthens the domestic supply chain by supporting investments in tooling, technology upgrades, quality and safety certifications, productivity improvements, and local content expansion,' it said. 'These are critical interventions that enable more Filipino parts makers to participate meaningfully in local vehicle production and compete within the ASEAN region.'
It also raised the 'importance of the upcoming Electric Vehicle Incentive Strategy (EVIS) program, where local parts manufacturers will play a major role in building the supply chain for electric mobility.' The PPMA said EVs require a wide range of components that Philippine manufacturers can supply, including wiring harnesses, stamped and structural parts, body components, electronics housings, thermal systems, and eventually power electronics and battery-related 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,' the group said.
In another statement Sunday, Federation of Philippine Industries chairperson Beth Lee expressed gratitude for the '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.'
