The Philippine Parts Makers Association urged immediate talks with policymakers after President Ferdinand Marcos Jr. vetoed a proposed P4.32 billion budget for the Comprehensive Automotive Resurgence Strategy and P250 million for the Revitalizing the Automotive Industry for Competitiveness Enhancement program.
The association warned the move further jeopardizes an already struggling local automotive manufacturing sector.
“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,” said PPMA President Ferdinand Raquel santos.
CARS and RACE were designed to rebuild vehicle assembly volumes, strengthen local parts manufacturing, and restore the Philippines’ competitiveness in the ASEAN automotive market. For the PPMA, these programs are critical lifelines rather than optional support mechanisms.
In light of the veto, the group is seeking dialogue with senators, members of Congress and other government leaders to clarify how the programs work and why they are essential.
“We want to engage, not confront. The auto industry is ready to sit down with legislators to show how these programs drive jobs, investments and long-term industrial resilience,” Raquelsantos said. “This is about building a competitive manufacturing base for the Philippines.”
The PPMA stressed that time is critical. Without swift action, the group said the country risks being permanently sidelined in one of Southeast Asia’s most strategic manufacturing sectors.
The association noted the Philippines lags behind ASEAN counterparts, with limited local production and many parts makers relying on exports or non-automotive industries to survive.
It also emphasized the sector’s broad economic impact, noting that locally assembled vehicles generate demand for thousands of parts across the steel, plastics, electronics, rubber, logistics and tooling industries.
