The Philippine government has confirmed that it will continue funding the Comprehensive Automotive Resurgence Strategy (CARS) program, despite the removal of its specific allocation in the 2026 national budget. On January 19, officials from the Department of Budget and Management (DBM), Department of Trade and Industry (DTI), and Department of Finance (DOF) issued a joint statement confirming this move. They assured the public that the government would use existing funds to meet its existing commitments to the CARS program.

The Electric Vehicle Association of the Philippines (EVAP) welcomed the government's assurance, seeing it as a positive sign for the EV industry. EVAP President Edmund Araga emphasized that ongoing funding is very important because the Electric Vehicle Incentive Strategy (EVIS), which aims to support the growth of EVs, relies on a strong car manufacturing base. Without stable manufacturing support, it may become difficult to effectively implement EV incentives.

Although the original budget for CARS was vetoed, the government plans to use existing funds from previous budgets and savings from other departments to ensure obligations and commitment to participating companies are met. This move aims to keep investor confidence high and prevent any disruptions in local vehicle production, including the development of future electric vehicle parts and technologies.

The automotive and electric vehicle (EV) sectors have positively welcomed the renewed assurance. These groups say it boosts investor confidence and shows that the Philippines is committed to long-term growth in automotive manufacturing. This growth will also support the development of the broader EV industry.

REFERENCE

Barro, D., II. (2026, January 23). EVAP lauds budget pivot as major win for investor confidence. Manila Bulletin. https://mb.com.ph/2026/01/23/evap-lauds-budget-pivot-as-major-win-for-investor-confidence?

Ong, C. G. (2026, January 23). Funding for CARS welcomed by EVAP. The Manila Times. https://www.manilatimes.net/2026/01/24/business/top-business/funding-for-cars-welcomed-by-evap/2264345

Villanueva, J. (2026, January 23). CARS budget stimulates investments from EV industry. Philippine News Agency. https://www.pna.gov.ph/articles/1267617

Villanueva, J. (2026a, January 18). PH Auto Parts Makers hail funding for CARS program. Philippine News Agency. https://www.pna.gov.ph/articles/1267222