What's Happening?
The Electric Vehicle Association of the Philippines (EVAP) is advocating for the reinstatement of funding for the Comprehensive Automotive Resurgence Strategy (CARS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs. EVAP President Edmund Araga emphasized the importance of a strong local automotive manufacturing base to support the country's push for electric mobility. Araga highlighted that electric vehicles (EVs) rely on the same industrial ecosystem as internal combustion engine (ICE) vehicles, including platforms, supply chains, and skilled workforce. Without the policy support from CARS and RACE, local EV production may struggle to scale up. EVAP noted that successful EV transitions in neighboring
ASEAN countries have leveraged established ICE manufacturing bases.
Why It's Important?
The push for electric vehicles in the Philippines is crucial for the country's automotive industry's future competitiveness. Without a robust local manufacturing base, the Philippines risks increased dependence on imported vehicles and parts, weakening supplier networks, and falling behind in the ASEAN region's transition to electrified platforms. The CARS and RACE programs are essential for rebuilding local vehicle assembly volumes and strengthening the domestic parts manufacturing sector. By supporting these programs, the Philippines can ensure a balanced transition strategy that supports the coexistence of ICE, hybrids, and EVs, ultimately strengthening the country's ability to assemble EVs locally.
What's Next?
EVAP is calling for a balanced transition strategy that supports the coexistence of ICE, hybrids, and EVs while restoring the necessary local manufacturing scale. The association emphasizes that supporting CARS and RACE today will strengthen the ability to assemble EVs locally in the future. The outcome of this advocacy will depend on the government's response to the calls for reinstating funding for these programs and the automotive industry's ability to adapt to the evolving market demands.
