Auto parts manufacturers welcome assured funding for CARS program

MANILA — Local automotive parts manufacturers welcomed the government’s confirmation of funding for the Comprehensive Automotive Resurgence Strategy (CARS) program, saying it will help maintain investor confidence and support the continued growth of the domestic automotive sector.In a statement issued over the weekend, the Philippine Parts Makers Association (PPMA) said the availability of funding for the PHP4.23 billion CARS program this year is “an important step in sustaining investor confidence and reaffirming the government’s commitment to revitalizing domestic automotive manufacturing.”The group said 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,” the PPMA added.Finance Secretary Frederick Go earlier announced that funding for the CARS program—previously 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 offers fixed investment support and production volume incentives to automotive companies. As of 2025, the government has released PHP1.44 billion out of the program’s total PHP5.43 billion budget.Beyond CARS, the PPMA reiterated its support for the immediate rollout of the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which requires approximately 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,” the group said.“These are critical interventions that enable more Filipino parts makers to participate meaningfully in local vehicle production and compete within the ASEAN region.”The association also underscored the “importance of the upcoming Electric Vehicle Incentive Strategy (EVIS) program, where local parts manufacturers will play a major role in building the supply chain for electric mobility.”According to the PPMA, electric vehicles require a wide array of components that Philippine manufacturers are capable of supplying, including wiring harnesses, stamped and structural parts, body components, electronics housings, thermal systems, and, eventually, power electronics and battery-related components.“Strengthening the local parts sector today through programs like RACE will ensure that the Philippines is ready to capture these EV opportunities as EVIS accelerates industry transformation,” the group said.In a separate statement on Sunday, Federation of Philippine Industries chairperson Beth Lee welcomed the funding development, calling it a “vital step toward rebuilding investor confidence and honoring commitments to manufacturers.”“Automotive manufacturing is about more than vehicles — it drives jobs, technology transfer, and the growth of our local parts industry,” she said.“Only by sustaining industrial programs with credibility can the Philippines position itself as a trusted destination for long-term manufacturing investments.” (PNA)

Via: HealthAndFitnessPH