The Electric Vehicle Association of the Philippines (EVAP) has thrown its support behind renewed calls to reinstate funding for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs. EVAP President Edmund Araga warned that the country’s aggressive push for electric mobility, while welcome, risks stalling if it is not anchored on a strong local automotive manufacturing base.
Araga stressed that “Electric vehicles are still vehicles” and rely on the same fundamental industrial ecosystem as conventional vehicles (ICEs). EVs use the same platforms, supply chains, production facilities, and skilled workforce as ICE vehicles. Therefore, if local automotive manufacturing weakens—by losing the policy support provided by CARS and RACE—EV production will struggle to scale up locally. EVAP also noted that successful EV transitions in neighboring ASEAN countries are leveraging decades of investment in their established ICE manufacturing bases.
“The pattern is very clear. No country jumped straight into EVs without first building volume and capability in conventional automotive manufacturing. EVs are not a replacement for the auto industry—they are its evolution.” – Edmund Araga, EVAP President
The CARS and RACE programs were designed to rebuild local vehicle assembly volumes and strengthen the domestic parts manufacturing sector, which produces critical components like wiring harnesses, electronics, and body panels.
EVAP argues that without the production volume and policy certainty provided by these programs, component suppliers will not find it commercially viable to invest in the Philippines. This will result in:
1. Higher Dependence on Imports: The country will rely more on imported vehicles and parts.
2. Weaker Supplier Networks: Reduced capacity to localize future EV models and related technologies (like batteries and power electronics).
3. Risk of Falling Behind: The Philippines risks being permanently left behind as ASEAN transitions to electrified platforms.
EVAP is calling for a balanced transition strategy that supports the coexistence of ICE, hybrids, and EVs while the necessary local manufacturing scale is restored. “Supporting CARS and RACE today strengthens our ability to assemble EVs locally tomorrow,” Araga concluded.
