The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has urged the government to immediately release long-delayed incentives under the Comprehensive Automotive Resurgence Strategy (CARS) Program and to fast-track the rollout of its successor, the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.
CAMPI President Jose Maria Atienza said recent developments have raised serious concerns among industry players, particularly following the veto of budget allocations meant to cover fiscal support arrearages for Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp., the two remaining CARS participants.
“The participants should be able to receive their incentives based on their actual performance that already generated economic benefits,” Atienza said in a statement. He noted that the uncertainty surrounding the release of incentives undermines investor confidence and puts into question the government’s ability to honor its commitments.
Launched in 2015, the CARS program was designed to revive local vehicle manufacturing through performance-based fiscal support, with the aim of boosting production volumes, creating jobs, and strengthening the domestic supply chain. Industry data show that the program helped generate investments, expand local parts manufacturing, and support thousands of direct and indirect jobs.
Atienza also called on the government to urgently implement the RACE program, which is intended to build on CARS and serve as a transition toward future automotive industry development initiatives. Similar to CARS, RACE aims to encourage local vehicle manufacturing, reduce import dependence, and deepen the automotive supply chain.
However, the program’s implementation details and funding mechanisms remain pending, as they still require final guidelines under a Joint Administrative Order to be signed by the Department of Trade and Industry, Department of Finance, Department of Budget and Management, and the Board of Investments.
“Both CARS and RACE are fundamental programs that contribute to the overall industrial development of the country,” Atienza said, stressing the need for closer collaboration between government and industry.
He added that sustained policy support is critical not only for vehicle assembly but also for parts manufacturing, which plays a key role in attracting future investments and ensuring the long-term viability of the Philippine automotive sector.
