PH EV group seeks CARS, RACE funding reinstatement

MANILA: The Electric Vehicle Association of the Philippines (EVAP) is pushing for the reinstatement of the Comprehensive Automotive Resurgence Strategy (CARS) and Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs in the national budget.

Although welcoming the Marcos administration’s push for electric mobility through various means (incentives, charging infrastructure development, and renewable energy integration), the group noted that the push toward the widespread use of EV units in the country “will stall without a strong domestic automotive manufacturing base” without the two programs.

Earlier, the  Chamber of Automotive Manufacturers of the Philippines, Incorporated (CAMPI) and the Philippine Parts Makers Association aired their concern over the non-inclusion of the supposed allocation for the two line projects under the unprogrammed appropriations in the 2026 General Appropriations Act (also known as this year’s national budget).

Aside from them, Senate Finance Committee Chair Sherwin Gatchalian mentioned that Toyota and Mitsubishi (two of the biggest automotive manufacturers in the country) were promised to be paid through tax incentives — which have not been given for the past four to five years.

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In a statement, the group noted that electric vehicles cannot be developed separately from the wider automotive ecosystem.

“Electric vehicles are still vehicles. They use the same platforms, supply chains, production facilities, and skilled workforce as conventional vehicles. If local automotive manufacturing weakens, EV production — local or otherwise — will struggle to scale,” EVAP President Edmund Araga said.

The organization also explained that both CARS and RACE were designed to rebuild local vehicle assembly volumes, anchor major OEM (original equipment manufacturer) investments, and strengthen the domestic parts manufacturing sector.

Additionally, EVAP expressed firm belief that the country might lose what it has left in automotive production — at a time when neighboring countries in the region are rapidly expanding.

“The pattern is very clear. No country jumped straight into EVs without first building volume and capability in conventional automotive manufacturing. EVs are not a replacement for the auto industry — they are its evolution,” Araga declared.

Moreover, EVAP emphasized that local vehicle assembly is essential in not only in vehicle manufacturing but also for sustaining parts manufacturing such as wiring harnesses, electronics, body panels, thermal systems, and eventually batteries and power electronics — adding that without sufficient production volume and long-term policy support, investments in these components become commercially unviable.

Furthermore, the group shared that fewer locally assembled vehicles might result in higher dependence on imports, weaker supplier networks, and lesser opportunities to localize future EV models — leaving the Philippines permanently behind as ASEAN transitions to electrified platforms.

Meanwhile, EVAP called for a balanced transition strategy that allows internal combustion engine-powered vehicles, hybrids, and EVs to coexist while local manufacturing scale is rebuilt.

“Supporting CARS and RACE today strengthens our ability to assemble EVs locally tomorrow,” Araga explained. “If we want Philippine-made EVs in the future, we must first protect and grow Philippine automotive manufacturing today.”

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