E-vehicle industry seeks restoration of funding for CARS, RACE programs

THE Electric Vehicle Association of the Philippines (EVAP) urged the government to restore the vetoed funding for automotive industry incentive programs, citing the role of the broader automotive manufacturing industry in the success of electric vehicles (EV).

In a statement on Monday, the group stressed the importance of the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs, for which fiscal support was subjected to a Palace veto when the President signed the 2026 General Appropriations Act.

“CARS and RACE were designed to rebuild vehicle assembly volumes, strengthen parts manufacturing, and ensure policy continuity for the automotive sector,” the group said.

“Industry groups have warned that without these programs, the Philippines risks falling further behind Association of Southeast Asian Nations (ASEAN) neighbors that continue to invest heavily in automotive and EV manufacturing as strategic industries,” it added.

It said that even with recent policy initiatives that promote EV adoption, charging infrastructure, and clean energy integration, “the transition to electric mobility cannot succeed in isolation and must be anchored on a competitive and resilient domestic automotive manufacturing base.”

“The EV industry does not exist in a vacuum …Electric vehicles are still vehicles,” EVAP President Edmund A. Araga said.

“They rely on the same manufacturing ecosystem, supply chains, skilled workers, and industrial infrastructure that support conventional automotive production. If the automotive industry weakens, the EV sector will struggle to scale,” he added.

According to EVAP, Thailand, Indonesia, and Vietnam leverage their strong internal combustion engine manufacturing base in accelerating EV production.

“These countries did not leap directly into EVs without first building scale and capability in traditional automotive manufacturing,” it added.

EVAP said vehicle assembly and parts manufacturers are critical enablers of EV growth, as they also support the production of automotive components like wiring harnesses, electronics, body parts, thermal systems, and eventually batteries and electronics.

“Without sufficient production volume and government support, these investments become difficult to justify,” it added.

The group said that the government should implement a balanced and integrated industrial policy that will support both conventional and electric vehicles.

“We commend the President for his clear support for renewable energy and electric vehicles,” Mr. Araga said. “

“At the same time, we respectfully urge the government to view CARS and RACE as complementary to the EV roadmap. Supporting local automotive manufacturing today strengthens our ability to build EVs locally tomorrow,” he added. — Justine Irish D. Tabile