Mitsubishi Motors Philippines CARS Incentives After Budget Veto

On January 12, 2026, Mitsubishi Motors Philippines Corp. (MMPC) said it continues to work closely with government agencies to ensure the release of Mitsubishi Motors Philippines CARS incentives after President Marcos vetoed the PHP 4.32 billion allocation for the Comprehensive Automotive Resurgence Strategy (CARS) program in the 2026 national budget.
The company, a registered participant in the CARS scheme, acknowledged the government’s move as part of fiscal discipline but emphasized that Mitsubishi Motors Philippines CARS incentives remain critical for sustaining a stable investment climate and protecting the country’s automotive manufacturing base.
Mitsubishi Motors Philippines CARS incentives central to policy stability
MMPC stated that while it respects the budget veto, it remains focused on maintaining constructive engagement with regulators to preserve the predictability and transparency of industrial policy. Executives noted that consistent delivery of Mitsubishi Motors Philippines CARS incentives is essential for:

• Sustaining long-term capital investments

• Protecting local manufacturing jobs

• Ensuring cost competitiveness against regional producers

Industry leaders have repeatedly highlighted that incentive delays create uncertainty for automakers planning multiyear production and supply chain strategies.
Government efforts continue on Mitsubishi Motors Philippines CARS incentives
The Board of Investments confirmed that discussions are underway to facilitate the eventual release of Mitsubishi Motors Philippines CARS incentives despite the budgetary setback. Officials said they are working to align fiscal priorities with the government’s broader goal of strengthening domestic vehicle production and industrial resilience.
For MMPC, the continued dialogue reflects the importance of keeping the Philippine automotive sector aligned with global manufacturing standards while supporting employment and technology transfer.
Why Mitsubishi Motors Philippines CARS incentives matter for the industry
The CARS program was designed to make the Philippines a more competitive vehicle manufacturing hub by offering incentives tied to production volume and localization. Mitsubishi Motors Philippines CARS incentives are particularly significant because they help offset the higher operating costs faced by local assemblers compared with larger regional markets.
Without timely disbursement, manufacturers risk:

• Reduced investment in local plants

• Slower technology upgrades

• Pressure on employment and supplier networks

MMPC reiterated that its long-term commitment to the country remains unchanged, reinforcing its focus on domestic production, workforce stability, and maintaining the Philippines’ position in the Southeast Asian automotive value chain.