Vehicles along Commonwealth Avenue in Quezon City in this March 20, 2023. Mitsubishi Motor Philippines Corporation (MMPC) on Monday said it remains committed to work with the government to help the local automotive industry sector amid the veto of the PHP4.32-billion Comprehensive Automotive Resurgence Strategy (CARS) allocation under the 2026 General Appropriations Act. (PNA photo by Ben Briones)
Mitsubishi Motor Philippines Corporation (MMPC) has reaffirmed its commitment to local automotive parts manufacturers, pledging to process and release pending claims even after the PHP4.32-billion allocation for the Comprehensive Automotive Resurgence Strategy (CARS) program was vetoed from the 2026 national budget.
The CARS allocation was among the items struck out under the 2026 General Appropriations Act as the government tightened controls on unprogrammed appropriations, a move aimed at reinforcing fiscal discipline.
The program was designed to attract more investments into local automotive parts production and strengthen the competitiveness of the Philippine automotive industry.
In a statement, Mitsubishi Motor Philippines Corporation said it respects the decision of Ferdinand R. Marcos Jr., acknowledging its role in promoting responsible governance and prudent public spending. At the same time, the company stressed that the budget veto would not derail its support for local industry players.
MMPC said it remains committed to working closely with government agencies to ensure the timely processing and release of claims due to local parts producers, while continuing to push for clear, predictable, and transparent procedures that uphold the integrity of government programs and sustain investor confidence.
The firm added that its long-term focus remains on strengthening the competitiveness and industrialization of the Philippine automotive sector, supporting local manufacturing, safeguarding jobs, and contributing to sustainable economic growth.
Earlier, Department of Trade and Industry Undersecretary Ceferino Rodolfo said the agency is coordinating with the Department of Budget and Management to identify a mechanism to settle CARS arrearages.
He noted that these claims are backed by validated performance commitments and have gone through a robust and transparent inter-agency vetting process.
The budget issue has also drawn concern from industry groups. In a separate statement, the Electric Vehicle Association of the Philippines urged the government to reconsider and reinstate funding not only for CARS but also for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, warning that sustained support is crucial for the long-term growth of the local electric vehicle sector.
EVAP president Edmund Araga said electric vehicles depend on the same manufacturing ecosystem, supply chains, skilled workforce, and industrial infrastructure that underpin conventional automotive production. He cautioned that if the broader automotive industry weakens, the EV sector will struggle to scale and compete.
While the government continues to promote EV adoption as part of its environmental agenda, including expanding the nationwide charging network, Araga stressed that global experience shows a clear pattern.
Countries leading in EV development today are those that protected and nurtured their automotive industries for decades, underscoring that electric vehicles represent the next chapter of automotive manufacturing rather than a break from the existing ecosystem.