Philippines Secures CARS Program Funding to Boost Electric Vehicle Industry
The Philippine government has reaffirmed its commitment to strengthening the country's electric vehicle industry through the assurance of continued funding for the Comprehensive Automotive Resurgence Strategy program. This strategic move signals a significant step forward in developing a robust automotive manufacturing base essential for electric mobility.
Budget Assurance for Automotive Transformation
According to Edmund Araga, president of the Electric Vehicle Association of the Philippines, the budget assurance for the CARS program is critically important because the Electric Vehicle Incentive Strategy depends on a strong automotive manufacturing foundation. "You cannot scale electric mobility if the underlying ecosystem -- vehicle assembly, parts manufacturing and supplier development -- is weakened," Araga emphasized in a statement released on Friday, January 24, 2026.
He further explained that the country's transition to electric vehicles represents more than just a technological shift. "This is not a standalone shift in technology, but a major industrial transformation that requires stability in the broader automotive sector," Araga noted, highlighting the comprehensive nature of this industrial evolution.
Government Commitment and Investor Confidence
The Department of Budget and Management, Department of Finance, and Department of Trade and Industry announced in a joint statement on January 19 that financing for the CARS program, which was vetoed under the 2026 national budget, will now come from the budget of the DTI and the Board of Investments. This decision demonstrates the government's dedication to maintaining program continuity.
Araga stressed that this move significantly boosts investor confidence and positions the Philippines as a reliable partner for long-term electric vehicle investments. "When the government honors commitments under CARS, it sends the right signal: The Philippines can be trusted and industrial transformation under EVIS will be supported in a structured and responsible way," he added.
Building a Complete Electric Mobility Ecosystem
The Electric Vehicle Incentive Strategy focuses on developing an entire electric mobility industry rather than simply importing electric vehicles. Araga clarified that "EVIS is about building an entire electric mobility industry -- not just importing EVs," which underscores the necessity for continuity and credibility in government incentive programs.
This comprehensive approach ensures that the Philippines develops:
- A complete vehicle assembly infrastructure
- Robust parts manufacturing capabilities
- Strong supplier development networks
- Sustainable industrial transformation pathways
The government's commitment to the CARS program funding represents a strategic investment in the country's automotive future, creating a solid foundation for the electric vehicle industry's growth and development in the coming years.
