Mitsubishi Motors Philippines Corp. (MMPC) and the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) on Friday expressed concern over policy consistency after President Ferdinand Marcos Jr. vetoed unprogrammed appropriations in the 2026 budget, including funds for the Comprehensive Automotive Resurgence Strategy (CARS) program.
MMPC said it respects the decision to prioritize fiscal discipline but called for clarity regarding the release of incentives already earned through actual performance.
The automaker said it has invested heavily in local manufacturing during its 60 years in the country to increase the localization of parts and boost domestic output.
MMPC said it remains committed to working with government agencies to ensure transparent processes for settling incentive claims. MMPC said predictable policies are essential to sustaining investor confidence and protecting manufacturing jobs.
CAMPI said the uncertainty over funding commitments has broader implications for the local automotive sector. The industry group warned that unresolved funding issues could jeopardize future investments and the development of local parts manufacturing.
Participants should receive incentives corresponding to performance that has already delivered economic benefits to the country, CAMPI said.
The group urged the government to implement the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program as soon as possible to serve as a transition toward future development initiatives.
Both the CARS and RACE programs are key components of the industrial development strategy of the Philippines, CAMPI said. The group expressed support for efforts by government agencies to resolve the current funding and implementation issues.
The CARS program was designed to provide billions of pesos in incentives to carmakers that meet specific production targets.
Toyota Motor Philippines and MMPC are the two participants in the program, which required a minimum production of 200,000 units for each enrolled model.
