CAMPI joins snowballing concerns on CARS, RACE funding removal in 2026 GAA

MANILA:  The removal of the supposed budget for financial incentive commitments granted under the Comprehensive Automotive Resurgence Strategy (CARS) and Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs continues to grow.

In a statement, the Chamber of Automotive Manufacturers of the Philippines, Incorporated (CAMPI) shared the sentiments of Earlier, Senate Finance Committee Chair Sherwin Gatchalian that those who participated in the program should already reap the tax incentives.

“Recent developments have raised serious concerns on the funding for the financial incentive commitments granted under the CARS Program. The participants should be able to receive their incentives based on their actual performance that already generated economic benefits,” it noted.

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Should the two line items under the unprogrammed appropriations have been included in the 2026 General Appropriations Act, they would have the following allocations:

• CARS P4.32 billion
• RACE P250 million

On the other hand, the group — now led by its new president Jose Maria Atienza (Toyota Motor Philippines’ executive vice president) looks at the RACE Program as an “important transition to future industry development programs and should be implemented soon.”

“Both CARS and RACE are fundamental programs that contribute to the overall industrial development of the country. We fully trust and support efforts of key government agencies in urgently resolving these important matters,” CAMPI stated.

Earlier, the Philippine Parts Makers Association aired the same concern, saying that the non-inclusion of the budget “threatens what remains” of vehicle manufacturing in the country.

“CARS and RACE are critical to the survival of local car manufacturing,” PPMA President Ferdinand Raquelsantos was quoted as saying. “Without sustained production volumes, there is no viable auto parts industry, and without parts makers, vehicle assembly cannot survive.”

The said group is now asking for a dialogue with the members of the Senate and House of Representatives on the issue.

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