A LOCAL auto parts suppliers group wants a dialogue with policymakers following the rejection of the proposed budget for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs of the government.
“The Philippine auto parts industry needs CARS and RACE to survive. Without sustained and predictable government support, local manufacturers will continue to lose ground, investments will slow, and skilled jobs will disappear,“ Philippine Parts Makers Association (PPMA) President Ferdinand Raquelsantos said in a statement on Wednesday.
On Monday, President Ferdinand Marcos Jr. vetoed P92.5 billion in unprogrammed appropriations, including P4.3 billion and P250,000 for the CARS and RACE Programs, respectively.
Auto manufacturing consistently ranks among Southeast Asia’s top industries in terms of output, employment and exports, Raquelsantos said, pointing out that Thailand, Indonesia and Vietnam have treated it as a strategic sector, supporting it through long-term industrial policies and production scale.
Thailand produces more than 2 million vehicles annually, while Indonesia and Vietnam continue to expand both conventional and electric vehicle manufacturing, Raquelsantos noted.
“By contrast, the Philippines has steadily fallen behind its Asean neighbors. Local vehicle production remains limited, and many parts makers now depend on exports or non-automotive industries to stay afloat,“ Raquelsantos said.
“We want to engage, not confront. The auto industry is ready to sit down with our legislators to educate them on how CARS and RACE [would] drive jobs, investments, and long-term industrial resilience. This is about building a competitive manufacturing base for the country,” he added.
Local automotive manufacturing peaked in the 1990s in the Ramos administration amid the implementation of the Car Development Program.
Also on Monday, the Board of Investments (BOI) said it will work with other agencies, such as the Department of Budget and Management (DBM), to ensure that the government’s obligations in the RACE program are fulfilled.
BOI Managing Head and Trade Undersecretary Ceferino Rodolfo said the P4.32 billion was meant to cover the government’s remaining obligations to participants in the CARS program — in which the government committed to provide fiscal and non-fiscal incentives to automakers that can produce at least 200,000 units of a registered model over six years.
Two companies — Toyota Motor Philippines and Mitsubishi Motors Philippines — signed up for the program, which was launched in 2015.
On the other hand, the RACE program, which has yet to be launched, focuses on three models of four-wheeled internal-combustion engine vehicles, but with a lower production requirement.
