The Philippine government has finalized P4.23 billion in funding for the Comprehensive Automotive Resurgence Strategy (CARS) program this year, providing a significant boost to the country’s automotive manufacturing sector.
The Philippine Parts Makers Association (PPMA) welcomed the announcement on Sunday, stating that the confirmed budget ensures policy stability and protects thousands of local jobs within the manufacturing ecosystem.
Finance Secretary Frederick Go confirmed the allocation follows previous budget deliberations, with the Department of Budget and Management expected to release specific implementation guidelines shortly.
The CARS program is a centerpiece industrial policy designed to attract large-scale investment by offering production-based incentives to car manufacturers.
To date, the government has disbursed P1.44 billion of the program’s total P5.43 billion budget. In addition to the CARS funding, the PPMA is advocating for the swift implementation of the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.
The P125 million initiative aims to help local parts makers upgrade their technology and meet international quality standards, further strengthening the domestic supply chain.
Industry leaders also emphasized the importance of the upcoming Electric Vehicle Incentive Strategy (EVIS).
Local manufacturers are reportedly preparing to transition into the electric mobility space by producing components such as wiring harnesses, thermal systems, and battery-related parts.
The PPMA noted that the combination of these programs will allow Filipino manufacturers to compete more effectively within the ASEAN region and secure a position in the emerging global market for electric vehicles.
