PH auto parts makers group raises concern on CARS, RACE budget removal in 2026 GAA

Group says gov’t move puts local car manufacturing at risk

PH auto parts makers group raises concern on CARS, RACE budget removal in 2026 GAA

MANILA: Concerns on the vetoing of the proposed budget for the automotive-industry-related programs continues to snowball — this time, from the suppliers of local produced automotive components, parts and assemblies.

KEY TAKEAWAYS

  • How will CARS and RACE affect local car manufacturing?

    Per PPMA President Ferdinand Raquelsantos, without sustained production volumes, there is no viable auto parts industry, and without parts makers, vehicle assembly cannot survive.
  • How much budget were supposed to be allotted for CARS and RACE programs in the 2026 General Appropriations Act?

    If it was not vetoed, the CARS program was supposed to have a P4.32-billion allocation while for RACE, P250 million.
  • In a statement, the Philippine Parts Makers Association (PPMA) said that the decision to remove the funding for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs “threatens what remains” of vehicle manufacturing in the country.

    Per PPMA, the issue directly affects whether cars will continue to be built in the country at all.

    Philippine Parts Maker Association, Inc. logo Photo from Philippine Parts Maker Association, Inc. Facebook page

    “CARS and RACE are critical to the survival of local car manufacturing,” PPMA President Ferdinand Raquelsantos was quoted as saying. “Without sustained production volumes, there is no viable auto parts industry, and without parts makers, vehicle assembly cannot survive.”

    Other stories:

    According to the group, automotive manufacturing is one of the key sectors in Southeast Asia — noting that Thailand is the region’s pickup truck and passenger car hub, Indonesia has facilities for multi-purpose vehicles and crossovers, and Vietnam attracting investments for both internal combustion and electric vehicles.

    “In all these countries, locally assembled cars support thousands of parts suppliers, from stamping and plastic injection to electronics and wiring harnesses,” the group noted.

    EDSA Photo by Ruben Manahan IV

    However, PPMA mentioned that Philippines has steadily fallen behind as local assembly volumes remain low, and most vehicles sold in the market are imported as completely built units.

    “Automotive manufacturing has always been a core industry in Southeast Asia,” Raquelsantos said. “When you lose local assembly, you lose the ecosystem that supports it. That includes tooling, testing, engineering, and thousands of skilled manufacturing jobs.”

    Ferdinand Raquelsantos vehicle production PH Photo from Philippine Parts Maker Association, Incorporated

    Further, the organization stated that in the 1990s, the local automotive manufacturing reached its peak, with multiple models were assembled locally with higher local content and stronger supplier participation.

    “We were almost there,” the PPMA president said. “The factories are here. The suppliers are here. The workforce and technical know-how are here. What has been missing is policy continuity and long-term commitment,” Raquelsantos added.

    vehicle production PH Photo from Philippine Parts Maker Association, Incorporated

    With that, PPMA is seeking for a dialogue with the government — particularly the legislators on both chambers of the Congress — to better explain how automotive programs work and why they matter to the motoring public.

    “This is not just about manufacturers,” Raquelsantos said. “When cars are built locally, you create jobs, develop engineering talent, and strengthen supply chains. We want to sit down with policymakers and explain how CARS and RACE help keep car manufacturing alive in the Philippines.”

    EDSA Photo by Ruben Manahan IV

    Earlier, Senate Finance Committee Chair Sherwin Gatchalian raised his concerns on the removal of the intended budget for both CARS and RACE.

    Gatchalian said in an earlier briefing that Mitsubishi and Toyota were promised to be paid through tax incentives — which have not been given for the past four to five years.

    Both of which are filed as line items under unprogrammed appropriations, CARS and RACE are eyed to have the following allocations:

    CARS P4.32 billion
    RACE P250 million

    Also read:

    PPMA ‘concerned’ over lack of gov't support amid automakers’ optimistic sales projection for 2025

    ABMAP pushes for govt support on local manufacturing of CBU units

    PH body manufacturers eyes PUV modernization program reimplementation

    Connect with us through our various social media pages:

    Facebookhttps://www.facebook.com/ZigWheelsPhilippines

    Instagramhttps://www.instagram.com/zigwheelsph/

    Tiktokhttps://www.tiktok.com/@zigwheels

    Youtubehttps://www.youtube.com/@ZigWheelsPhilippines/

    Ruben Manahan IV

    Ruben Manahan IV

    Started his journalism stint as a cub reporter for a local daily. A certified news junkie, Fort had the chance to cover various beats—ranging from politics to lifestyle. However, his heart now belongs to motoring.

    Read Full Bio

    Sell your car at the best price

    Verified and genuine buyers Verified and genuine buyers
    Free listing Free listing
    List your car

    Trending & Fresh Updates

    You might also be interested in

    • News
    • Featured Stories

    Featured Cars

    • Upcoming
    • Kia Carens 2026
      Kia Carens 2026
      ₱1.57 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • Toyota Vios 2026
      Toyota Vios 2026
      ₱832,000 Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • MG RX8
      MG RX8
      ₱1.05 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • Omoda 7
      Omoda 7
      ₱1.5 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched
    • Nissan Ariya ev
      Nissan Ariya
      ₱5 Million Expected Price Manila
      Expected Launch TBA Alert Me When Launched

    Latest Car Videos on Zigwheels

    Zigwheels
    • 2025 Geely EX5 Review | Zigwheels.Ph
      2025 Geely EX5 Review | Zigwheels.Ph
      07 Jan, 2026 .
    • I Finally Get the Tesla Hype – 2026 Tesla Model Y | POV Review | ZigWheels.Ph
      I Finally Get the Tesla Hype – 2026 Tesla Model Y | POV Review | ZigWheels.Ph
      07 Jan, 2026 .
    • ZW Year End Wrap-Up: The Most Cars of 2025! | Zigwheels.Ph
      ZW Year End Wrap-Up: The Most Cars of 2025! | Zigwheels.Ph
      30 Dec, 2025 .
    • 2025 Jaecoo J7 SHS Premium Review | Zigwheels.Ph
      2025 Jaecoo J7 SHS Premium Review | Zigwheels.Ph
      30 Dec, 2025 .
    • 2026 Toyota GR Corolla First Look | Zigwheels.Ph
      2026 Toyota GR Corolla First Look | Zigwheels.Ph
      30 Dec, 2025 .
    • 2026 Toyota GR Corolla First Look | Zigwheels.Ph
      2026 Toyota GR Corolla First Look | Zigwheels.Ph
      24 Dec, 2025 .
    • 2025 Toyota Corolla Altis GR-S Review | Zigwheels.Ph
      2025 Toyota Corolla Altis GR-S Review | Zigwheels.Ph
      22 Dec, 2025 .
    • Aito Super Factory Tour in Chongqing | Zigwheels.Ph
      Aito Super Factory Tour in Chongqing | Zigwheels.Ph
      18 Dec, 2025 .
    • 2025 Suzuki Fronx SGX Walkaround | Zigwheels.Ph
      2025 Suzuki Fronx SGX Walkaround | Zigwheels.Ph
      18 Dec, 2025 .
    • 2025 Mitsubishi Mirage G4 GLS Spec Guide | Zigwheels.Ph
      2025 Mitsubishi Mirage G4 GLS Spec Guide | Zigwheels.Ph
      18 Dec, 2025 .
    Watch Car Videos

    Car Articles From Carmudi

    • journal
    • advice
    • financing
    • insurance
    • PH auto parts suppliers concern over CARS, RACE allocation removal in 2026 nat'l budget
      PH auto parts suppliers concern over CARS, RACE allocation removal in 2026 nat'l budget
      , Jan 07, 2026
    • Auto industry-related support fundings removed from 2026 nat'l budget
      Auto industry-related support fundings removed from 2026 nat'l budget
      Ruben Manahan IV, Jan 07, 2026
    • MMDA GM Torre to handle major ops immediately
      MMDA GM Torre to handle major ops immediately
      Ruben Manahan IV, Jan 05, 2026
    • Fuel price continues upward trend
      Fuel price continues upward trend
      Paulo Papa, Jan 05, 2026
    • Here are the PH-market Honda Prelude's specifications
      Here are the PH-market Honda Prelude's specifications
      Paulo Papa, Jan 02, 2026
    • Register & get OR/CR for your imported car the right way
      Register & get OR/CR for your imported car the right way
      Carmudi PH, Apr 16, 2025
    • How to handle a checkpoint: The right and wrong moves
      How to handle a checkpoint: The right and wrong moves
      Carmudi PH, Apr 14, 2025
    • Don’t risk it: Here’s how to confirm driver’s license validity
      Don’t risk it: Here’s how to confirm driver’s license validity
      Carmudi PH, Apr 08, 2025
    • Your complete guide to a Non-Professional Driver’s License
      Your complete guide to a Non-Professional Driver’s License
      Carmudi PH, Apr 04, 2025
    • Fixing errors or updating info? How to revise your driver’s license
      Fixing errors or updating info? How to revise your driver’s license
      Carmudi PH, Apr 02, 2025
    • First time buying a car? Here’s what to know about loans
      First time buying a car? Here’s what to know about loans
      Carmudi PH, Apr 10, 2025
    • Fast-track your car loan payoff with these hacks
      Fast-track your car loan payoff with these hacks
      Carmudi PH, Apr 06, 2025
    • Pasalo Car Financing: How it works & what to watch out for
      Pasalo Car Financing: How it works & what to watch out for
      Carmudi PH, Apr 03, 2025
    • Car loan issues? Here’s how to resolve disputes in the Philippines
      Car loan issues? Here’s how to resolve disputes in the Philippines
      Carmudi PH, Mar 22, 2025
    • Need better auto loan terms? Here’s how to refinance
      Need better auto loan terms? Here’s how to refinance
      Carmudi PH, Mar 21, 2025
    • How to lower your insurance premium in 2026 (without sacrificing coverage)
      How to lower your insurance premium in 2026 (without sacrificing coverage)
      Carmudi PH, Jan 07, 2026
    • Car insurance FAQs updated for 2026: Essential, practical, and easy guide for drivers
      Car insurance FAQs updated for 2026: Essential, practical, and easy guide for drivers
      Carmudi PH, Jan 05, 2026
    • New car buyers' guide: What insurance you need in 2026
      New car buyers' guide: What insurance you need in 2026
      Carmudi PH, Jan 02, 2026
    • Insurance resolutions for 2026: 6 Smart moves to protect your vehicle and save more
      Insurance resolutions for 2026: 6 Smart moves to protect your vehicle and save more
      Carmudi PH, Dec 31, 2025
    • Year-end car insurance renewal/switch tips for Filipino car owners - A must-read
      Year-end car insurance renewal/switch tips for Filipino car owners - A must-read
      Carmudi PH, Dec 29, 2025

    Compare

    You can add 3 variants maximum*