CAMPI raises concerns over 2026 budget cuts affecting auto industry
autocar.com.ph, 12 Jan '26
The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has expressed concern regarding the signed 2026 national budget, citing its potential impact on the local automotive industry following President Ferdinand Marcos Jr.'s veto of funding for key industry support programmes.
Among the items removed from the 2026 national budget were the PHP 4.32 billion (US$ 73 million) allocation for the Comprehensive Automotive Resurgence Strategy (CARS) programme and the PHP 250 million budget for the Revitalising the Automotive Industry for Competitiveness Enhancement (RACE) programme.
Both allocations were intended to provide fiscal incentives to vehicle manufacturers investing in local production.
The CARS programme offered performance-based fiscal support to manufacturers that met minimum production targets. These included Toyota Motor Philippines Corporation (TMPC) and Mitsubishi Motors Philippines Corporation (MMPC), which operate manufacturing facilities in Santa Rosa, Laguna.
Industry sources indicated that the vetoed 2026 budget allocation was intended to cover the government's remaining commitments under the CARS programme.
The RACE programme, developed by the Department of Trade and Industry (DTI), was designed as a successor to CARS to maintain competitiveness in the local automotive sector and support future industry development initiatives. The programme now faces uncertainty due to the absence of funding. The DTI has stated that it is exploring alternative measures to ensure that investors continue to receive their earned incentives.
In relation to these developments, CAMPI emphasised that collaboration between government and industry is essential for securing the future viability of the Philippine automotive manufacturing sector.
The organisation added that such collaboration is crucial in creating a positive environment for future investments and in developing a more robust local auto parts manufacturing industry.
CAMPI further stated that both the CARS and RACE programmes are fundamental initiatives contributing to the overall industrial development of the country and expressed confidence in the efforts of key government agencies to resolve these matters urgently.
