The government will tap P4.081 billion in savings from the Department of Public Works and Highways’ 2025 budget to settle overdue automotive manufacturing incentives, including about P1.5 billion owed to Toyota Motor Philippines Corp. under the Comprehensive Automotive Resurgence Strategy.
During congressional budget deliberations, Board of Investments Managing Head Ceferino Rodolfo said the DPWH savings would augment funding for outstanding commitments to Toyota, Mitsubishi Motors Philippines Corp., and participating auto-parts manufacturers.
“So savings of P4.081 billion… pambayad sa Toyota, Mitsubishi and others,” Rodolfo told lawmakers.
Cagayan de Oro Rep. Rufus Rodriguez said the government still owes Toyota about P1.5 billion in CARS incentives and pressed the Department of Trade and Industry over the delayed payments.
Rodolfo acknowledged the government’s obligations to companies that invested under the program, saying the payments are already being processed.
“We really would like to thank the help of Congress in really highlighting the importance of, of course, paying the companies that have invested here, the incentives that we owe them,” he said.
Other CARS beneficiaries include parts manufacturers Denso, Manila Plastics, F-Tech Philippines, SMRC Automotive Technology, and Roberts Automotive.
Clearing the CARS arrears would remove a lingering government obligation as the Philippines prepares a new incentive program aimed at attracting more automotive investments.
Rodolfo said funding for the successor Revitalizing the Automotive Industry for Competitiveness Enhancement program has been included in the DTI’s Tier 2 proposal for 2027. Its joint administrative order is also being circulated for approval.
RACE is expected to complement the Electric Vehicle Incentive Strategy as the government seeks to attract new investments in vehicle and auto-parts manufacturing.
The shift comes as the Philippines tries to deepen its automotive supply chain, with incentives increasingly tied to investment, local production, and the development of higher-value manufacturing capacity.
