EVAP backs calls to reinstate CARS, RACE budget
The Electric Vehicle Association of the Philippines (EVAP) has expressed support for ongoing calls to reinstate funding for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs that were earlier vetoed by President Ferdinand Marcos Jr. before signing the 2026 General Appropriations Act.
EVAP president Edmund Araga, in a statement on Monday, emphasized that the long-term success of the Philippine electric vehicle sector is closely linked to the strength of the broader automotive manufacturing industry.
He said EVAP acknowledged and welcomed the strong commitment of the Marcos administration to renewable energy and electric vehicle development, citing recent policy initiatives that promote EV adoption, charging infrastructure, and clean energy integration.
However, the association stressed that 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. They rely on the same manufacturing ecosystem, supply chains, skilled workers, and industrial infrastructure that support conventional automotive production. If the local automotive industry weakens, the EV sector will struggle to scale,” according to Araga.
Further, he said CARS and RACE were designed to rebuild vehicle assembly volumes, strengthen local parts manufacturing, and ensure policy continuity for the automotive sector.
Industry groups earlier warned that without these programs, the Philippines risks falling further behind ASEAN neighbors that continue to invest heavily in automotive and EV manufacturing as strategic industries.
Across Southeast Asia, automotive manufacturing consistently ranks among the top industrial sectors in terms of employment, exports and value creation.
Countries such as Thailand, Indonesia and Vietnam are now leveraging their strong internal combustion engine manufacturing base to accelerate EV production, battery investments and new mobility technologies.