Firm government assurance on funding for the Comprehensive Automotive Resurgence Strategy (CARS) program is seen as a decisive move to restore investor confidence and reinforce long-term support for the domestic automotive industry.
This, as the Philippine Parts Makers Association (PPMA) said over the weekend that confirmation of funding availability for the P4.23-billion CARS program this year sends a strong signal of policy reliability at a critical time for the sector. According to the group, the development is “an important step in sustaining investor confidence and reaffirming the government’s commitment to revitalizing domestic automotive manufacturing.”
The association stressed that continued funding is essential to keeping momentum within the industry, noting that 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.”
“This resolution strengthens policy stability, protects jobs and helps preserve the manufacturing ecosystem that the Philippines has worked hard to build over the years,” it said.
Finance Secretary Frederick Go earlier announced that funding for CARS—initially vetoed in the national budget—has now been finalized, with further details to be released by the Department of Budget and Management. The CARS program provides fixed investment support and production volume incentives to automotive firms, making it a cornerstone of the country’s industrial policy. As of 2025, the government has released P1.44 billion out of the program’s P5.43-billion total budget.
Beyond CARS, the PPMA underscored the urgency of immediately rolling out the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which requires an estimated PHP125 million in funding.
“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.
