The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has expressed its concern over the signed 2026 national budget, which affects the Philippine automotive industry since President Ferdinand Marcos Jr. vetoed funding for major industry support programs.
Among the items removed from the 2026 national budget is the P4.32 billion budget for the Comprehensive Automotive Resurgence Strategy (CARS) program and P250 million for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program. Both budgets were proposed to provide fiscal incentives to car manufacturers investing in local production.
The CARS program promised performance-based fiscal support to vehicle manufacturers that met minimum production targets. These include Toyota Motor Philippines and Mitsubishi Motors Philippines Corporation, with their respective manufacturing plants located in Santa Rosa, Laguna. As previously reported, industry experts say the 2026 national budget allocation that was vetoed was meant to cover remaining government commitments under the CARS program.
The RACE program, crafted by the Department of Trade and Industry (DTI), is a successor to the CARS program to sustain competitiveness in the local automotive sector and to establish future industry development programs. However, this program is now also facing uncertainty due to a lack of funding. As such, the DTI said that it has already started exploring alternative measures to ensure investors still receive their earned incentives.
In line with the said issue, CAMPI said that the “collaboration between Government and Industry” is important in securing the “future viability of the Philippine Auto Manufacturing sector.” CAMPI added that the said collaboration is “crucial in creating a positive environment for future investments and help develop a more robust local Auto Parts Manufacturing Industry.”
“Both CARS and RACE programs are fundamental programs that contribute to the overall industrial development of the country. We fully trust and support efforts of key government agencies in urgently resolving these important matters,” CAMPI said in a statement.
