Gov’t to settle CARS obligations before focusing on EV incentives program
The Philippine government plans to settle its P5.16 billion debt to automotive manufacturers under the CARS program before launching new electric vehicle incentives. Several major car companies have already expressed interest in the upcoming EVIS and RACE programs.
Why it matters
This reflects the government's effort to balance legacy industrial commitments with the transition toward green energy and electric vehicle manufacturing.
THE GOVERNMENT is committed to settling its arrears from the Comprehensive Automotive Resurgence Strategy (CARS) Program before shifting its focus on programs that incentivize electric vehicle (EV) manufacturing, the Department of Trade and Industry (DTI) said.
Speaking to reporters on Wednesday, Trade Secretary Maria Cristina A. Roque said it is looking to settle its P5.16-billion obligation to participants of the CARS program.
Its funding sources include savings from the Department of Public Works and Highways budget last year.
CARS participants were offered incentives to manufacture at least 200,000 units of certain mass-market cars over a six-year period.
The two CARS participants are Toyota Motor Philippines (TMP) and Mitsubishi Motors Philippines Corp. (MMPC).
Ms. Roque said the government is hoping to settle CARS-related obligations as it rolls out its Electric Vehicle Incentive Strategy (EVIS), which was established under Executive Order No. 121.
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