Go: Gov’t finds ‘funding solution’ for CARS program
The Marcos administration has resolved the funding gap in the government’s major automotive incentive program, securing its continuation after losing its 2026 budget allocation, Finance Secretary Frederick Go announced on Friday.
The Comprehensive Automotive Resurgence Strategy (CARS) program, designed to spur investments in local vehicle manufacturing through government incentives, saw its P4.32-billion funding in the 2026 national budget vetoed by President Marcos. It was among P92.5 billion in vetoed unprogrammed appropriations, which also included a P250-million allocation for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.
“After much chatter on the vetoed funding of the CARS program, the government finalized a funding solution, and car manufacturers enrolled in the program can now be assured that the government will fulfill its commitment to investors,” Go said in a press briefing after key economic agencies presented their reform agendas to the private sector.
Launched in 2015, the CARS program provides tax incentives to enrolled car companies that locally produced at least 200,000 units between 2018 and 2024, including the majority of their vehicle parts.
However, the government has yet to settle a balance of nearly P4 billion owed to participating automakers.
Go clarified that the funding solution does not yet cover the RACE program, noting that the Department of Budget and Management will soon explain the resolution.
