The Philippine automotive industry is renewing its push for a performance-based incentive program similar to the discontinued Comprehensive Automotive Resurgence Strategy (CARS), arguing that both internal combustion engine (ICE) and electrified vehicle production will be necessary to sustain local manufacturing and meet evolving market demand.
Industry leaders say the country’s transition toward electric mobility should not come at the expense of conventional vehicle production, particularly as businesses continue to rely heavily on pickups and other utility vehicles that underpin economic activity outside major urban centers.
Toyota Motor Philippines executive vice president Jose Maria Atienza said the industry remains committed to working with government on a new incentive framework that would encourage investments, expand local assembly operations, and improve the competitiveness of Philippine vehicle manufacturing.
“We never give up,” said Atienza, referring to efforts to revive a CARS-like program or a revamped Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) initiative.
The remarks highlight a broader industry concern that while policy support has increasingly favored electrification, the domestic market remains largely driven by conventional vehicles.
Commercial models such as the Tamaraw, pickups, and low-displacement vehicles continue to serve as critical tools for micro, small, and medium enterprises, logistics operators, and provincial businesses.
Atienza said Toyota would be ready to participate should a new incentive scheme be introduced, adding that the Tamaraw remains a strong candidate for inclusion under a future program.
The industry is advocating for a performance-based approach that rewards production volume, investments, and localization efforts regardless of powertrain technology. Such a framework, industry officials argue, would allow manufacturers to scale up electric vehicle production while preserving ICE assembly lines that continue to generate demand and employment.
With policymakers reviewing industrial development priorities, automakers see an opportunity to craft a more technology-neutral incentive regime that supports both the country’s electrification goals and its broader manufacturing ambitions.
