For PPMA, the issue goes beyond policy. It directly affects whether cars will continue to be built in the country at all.

“CARS and RACE are critical to the survival of local car manufacturing,” said Ferdi Raquelsantos, President of PPMA. “Without sustained production volumes, there is no viable auto parts industry, and without parts makers, vehicle assembly cannot survive.”

Across Southeast Asia, automotive manufacturing remains one of the most important industrial sectors. Thailand has positioned itself as the region’s pickup truck and passenger car hub, producing over two million vehicles annually. Indonesia has built scale around MPVs and small SUVs, while Vietnam continues to attract new investments for both internal combustion and electric vehicles. In all these countries, locally assembled cars support thousands of parts suppliers, from stamping and plastic injection to electronics and wiring harnesses.

The Philippines, however, has steadily fallen behind. Local assembly volumes remain low, and most vehicles sold in the market are now imported as completely built units. According to PPMA, this shift has had a direct impact on the supplier base, forcing many parts manufacturers to scale down, diversify away from automotive, or rely heavily on exports just to survive.

“Automotive manufacturing has always been a core industry in Southeast Asia,” Raquelsantos said. “When you lose local assembly, you lose the ecosystem that supports it. That includes tooling, testing, engineering, and thousands of skilled manufacturing jobs.”

Historically, the Philippines has proven it can build cars competitively. Local automotive manufacturing peaked in the 1990s during the Ramos administration under the Car Development Program, when multiple models were assembled locally with higher local content and stronger supplier participation. That period supported a wider range of locally produced components, from metal parts and interiors to electrical systems.

“We were almost there,” Raquelsantos said. “The factories are here. The suppliers are here. The workforce and technical know-how are here. What has been missing is policy continuity and long-term commitment.”

The CARS program was designed to rebuild scale by encouraging higher production volumes for locally assembled models, making it economically viable for parts makers to invest in tooling, automation, and quality upgrades. RACE was meant to expand that support to a broader range of vehicles and technologies, including new powertrains.

PPMA is now calling for dialogue with government, particularly senators and members of Congress, to better explain how automotive programs work and why they matter to the motoring public.

“This is not just about manufacturers,” Raquelsantos said. “When cars are built locally, you create jobs, develop engineering talent, and strengthen supply chains. We want to sit down with policymakers and explain how CARS and RACE help keep car manufacturing alive in the Philippines.”

PPMA warns that without decisive action, the Philippines risks becoming a purely import market, missing out on the economic and technological benefits that come with building cars locally. For an industry that once showed real promise, the association says the choice is clear: either recommit to automotive manufacturing now, or watch it disappear altogether.