The Department of Trade and Industry (DTI) has assured local automotive assemblers and parts suppliers that all unpaid incentives totalling to PHP 5.16 billion owed under the Comprehensive Automotive Resurgence Strategy (CARS) program will be settled before the government introduces new incentive frameworks for the sector.

Trade Secretary Ma. Cristina Roque gave the assurance following questions regarding the timeline for the Electric Vehicle Incentive Strategy (EVIS) program.

The government currently owes approximately PHP 1.5 billion to Toyota Motor Philippines Corp. (TMP) alone as part of its commitments under the CARS program. It also owes Mitsubishi Motors Philippine Corporation (MMPC) and several parts suppliers who participated in the invest program.

Board of Investments (BOI) Managing Head and DTI Undersecretary Ceferino Rodolfo previously clarified during a congressional hearing that the funding to cover these obligations has been identified, coming primarily from Department of Public Works and Highways (DPWH) savings amounting to around PHP 4 billion.

Roque confirmed that over PHP 4 billion in DPWH savings has been released to cover the unpaid fiscal support. Beyond the major car manufacturers, the released funds will also be used to settle outstanding accounts with domestic auto parts makers that participated in the supply chain required under the CARS program. This covers the PHP 4.32 billion amount intended to settle the government's incentive liabilities vetoed by the President from the 2026 budget's unprogrammed funds list.

Clearing these arrears is seen as a crucial step to restore industry confidence and establish a clean slate before rolling out the new EVIS framework later this year.

Signed by President Ferdinand R. Marcos Jr. under Executive Order No. 121 on July 29, 2026, the EVIS program seeks to stimulate local manufacturing of electric vehicles along with their core parts and components. The new scheme will accommodate four participating vehicle manufacturers.

Mitsubishi Motors Philippines Corp. (MMPC) has already expressed its intention to join the EVIS framework with a committed investment of PHP 7 billion. While MMPC recently introduced the Outlander Plug-in Hybrid Electric Vehicle (PHEV) to the local market, the specific model it intends to assemble under EVIS has yet to be finalized. Local utility vehicle manufacturer Francisco Motor Corporation has also submitted its intent to participate.

While the EVIS program currently limits participation to four slots, Roque noted that the DTI will consult with the Department of Finance (DOF) to evaluate options should additional vehicle manufacturers express interest in local EV assembly.