Restore Cars, Race funds, Marcos admin urged
Electric vehicle (EV) manufacturers have joined other automotive industry groups in clamoring for the Marcos administration to restore funding for two major incentive programs that were struck from the 2026 national budget.
In a statement on Monday, the Electric Vehicle Association of the Philippines (Evap) called on President Marcos to reinstate funding for the Comprehensive Automotive Resurgence Strategy (Cars) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (Race) programs.
Funding for the two incentive schemes was among the P92.5 billion worth of unprogrammed items that Mr. Marcos vetoed. These programs were meant to strengthen local vehicle manufacturing, which Evap said was crucial to the long-term growth of the EV market.
“We respectfully urge the government to view Cars and Race as complementary to the EV roadmap,” said Edmund Araga, president of Evap. “Supporting local automotive manufacturing today strengthens our ability to build EVs locally tomorrow.”
“Reinstating support for Cars and Race is a critical step toward ensuring that the country remains competitive in both automotive manufacturing and electric mobility,” he added.
Impact on EV expansion
Araga warned that withdrawing support for the programs could weaken the broader automotive industry that EV production depends on.
Evap’s call echoes concerns raised last week by the Philippine Parts Makers Association, which warned that the Philippines is already lagging behind in Southeast Asia, a gap that could widen if Cars and Race funding remain suspended.
Unpaid incentives
Last week, the Chamber of Automotive Manufacturers of the Philippines, Inc. also urged the government to reinstate funding for the two programs, saying participating carmakers have already generated economic benefits and should receive the incentives promised.
Under the Cars program, the government committed up to P9 billion in incentives each to three car companies that could locally produce 200,000 units from 2018 to 2024, including the majority of parts.
Two firms enrolled: Toyota Motor Philippines, which fielded its best-selling Vios subcompact sedan, and Mitsubishi Motors Philippines Corp., which entered its Mirage hatchback and Mirage G4 sedan.
According to the Board of Investments, nearly P4 billion in tax payment certificates under Cars remains unpaid.
Meanwhile, the Race program planned to offer up to P3 billion each in incentives to three manufacturers that could produce 100,000 internal-combustion-engine vehicles locally, with the enrolled model being introduced to the Philippine market within two years of acceptance.
