Manila: Mitsubishi Motor Philippines Corporation (MMPC) on Monday expressed its commitment to process and release claims to local producers of automotive parts despite the veto on the PHP4.32-billion Comprehensive Automotive Resurgence Strategy (CARS) allocation under this year's national budget.

According to Philippine News Agency, the allocation for the CARS program is among those vetoed under the 2026 General Appropriations Act (GAA) as the government strengthens measures against unprogrammed appropriations. The program aims to encourage more investments in automotive parts production locally to boost the industry's competitiveness.

MMPC stated it respects President Ferdinand R. Marcos Jr.'s decision, recognizing "the decision's role in safeguarding fiscal discipline and promoting responsible governance." The corporation reiterated its commitment to collaborating with government agencies to ensure the timely processing and release of claims and to advocate for transparent processes that support government programs and reinforce investor confidence.

The company affirmed its dedication to the long-term competitiveness and industrialization of the Philippine automotive sector-supporting local manufacturing, protecting jobs, and contributing to sustainable economic growth.

Department of Trade and Industry Undersecretary Ceferino Rodolfo mentioned they are working with the Department of Budget and Management (DBM) to identify a mechanism to ensure payment of CARS arrearages, emphasizing a robust and transparent inter-agency process of vetting claims against the CARS Program.

In a separate statement, the Electric Vehicle Association of the Philippines (EVAP) called for the reinstatement of the CARS allocation, as well as those for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program. EVAP president Edmund Araga emphasized that EVs rely on the same manufacturing ecosystem, supply chains, skilled workers, and industrial infrastructure that support conventional automotive production. He noted that if the local automotive industry weakens, the EV sector "will struggle to scale."

The government is encouraging the use of EVs as part of its environmental protection initiatives, assuring EV owners of plans to increase the number of charging stations nationwide. Araga highlighted that countries succeeding in EVs today are those that have protected and nurtured their automotive industries for decades, indicating that EVs are the next chapter of automotive manufacturing rather than a replacement for the existing ecosystem.