The government today announced it has finalized a funding solution for the CARS (Comprehensive Automotive Resurgence Strategy) program, signaling to fulfill its commitment to investors in the program that sought to revitalize the fledgling automotive manufacturing sector in the country.
“The government has finalized a funding solution for the CARS program, and therefore, car manufacturers enrolled in the program can now be assured that government will fulfill its commitment to investors,” Finance Secretary Frederick Go announced during the Economic Manager’s Briefing on Friday, January 16, 2026.
Go did not elaborate on the mechanics of the funding solution but said the Department of Budget and Management is the agency in charge of the CARS budgetary allocation. “We have already resolved it, and we will fund the CARS program this year,” he added.
He also that the funding solution is only for the CARS program and does not include the RACE (Revitalizing the Automotive Industry for Competitiveness Enhancement) program.
It could be recalled that the PHP4.32-billion budget for the CARS Program was among the seven unprogrammed appropriations vetoed by President Ferdinand Marcos Jr. under the 2026 General Appropriations Act.
CARS is an incentive-driven program for its participants – Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp. and some automotive parts manufacturers.
Meanwhile, the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) Program is an important transition to future industry development programs and should be implemented soon.
