Gov’t to repay CARS participants by 2027

THE government is expected to repay car manufacturers participating in the Comprehensive Automotive Resurgence Strategy (CARS) program by next year, the Department of Trade and Industry (DTI) said.

“I have already resumed signing the TPCs (tax payment certificates),” Trade Undersecretary Ceferino S. Rodolfo told reporters on the sidelines of the Manila International Auto Show last week.

“(Payments) will be completed in 2027,” he said.

In January, the government said obligations incurred due to the CARS program will be funded with savings from the Department of Public Works and Highways’ (DPWH) 2025 budget.

President Ferdinand R. Marcos, Jr. had vetoed P4.32 billion in unprogrammed appropriations in the 2026 budget meant for the CARS program.

CARS participants awaiting payments are Toyota Motor Philippines Corp. (TMP), Mitsubishi Motors Philippines Corp. (MMPC), and several auto parts markers.

Any remaining validated requirements that have not yet been issued TPCs and are not funded by the 2026 General Appropriations Act may be included in the proposed 2027 budget, according to the joint statement issued earlier this year by the DTI, the Department of Finance (DoF) , and the Department of Budget and Management (DBM). 

If included in the 2027 National Expenditure Program, CARS funding will be subject to cash programming to ensure these are settled, the agencies said.

Launched in 2015 through Executive Order No. 182, the CARS program sought to incentivize domestic vehicle manufacturing.

Fiscal support was given to automotive companies that domestically produced at least 200,000 units of an enrolled vehicle model within six years.

The registered manufacturers included TMP, which manufactures the Vios sedan, and MMPC, which produces the Mirage hatchback and Mirage G4 sedan. — Beatriz Marie D. Cruz