The administration of President Ferdinand Marcos Jr. is significantly boosting the local automotive industry, aligning with a strategic vision to transform the Philippines into a regional hub for vehicle manufacturing and technology innovation.

With rising demand for locally produced vehicles, particularly electric and hybrid models, the government has taken steps to attract new investments and support the development of a robust automotive ecosystem in the country.

A key initiative in this effort is the Comprehensive Automotive Resurgence Strategy (CARS) program, which was extended for five more years in May 2023. The program offers fiscal incentives to companies in exchange for their commitment to producing a certain number of vehicles locally. Under this initiative, companies like Toyota Motor Philippines Corporation (TMP) are encouraged to invest in manufacturing operations that will contribute to the country's automotive industry growth. TMP has committed to producing vehicles locally, including the new generation of the Toyota Tamaraw, which is being revived with an investment of PHP 5.5 billion (US$ 94.9 million). This project includes a new 1.5-hectare conversion facility in Laguna, marking a significant step in local manufacturing.

The Toyota Tamaraw, a vehicle that became iconic in the 1980s and was a staple in Filipino transportation will be produced in TMP's 78-hectare ecozone in Laguna. This production setup will deliver about 20,000 units of the Tamaraw, helping to meet local transportation needs while offering cost-efficient pricing for Filipino consumers. The return of the Tamaraw is expected to create over 500 direct jobs and support 15,090 spillover employment opportunities, strengthening the automotive value chain in the region.

TMP's efforts are part of a broader push by the Philippine Economic Zone Authority (PEZA) to support the growth of the automotive sector. According to PEZA Director General Tereso Panga, the agency is prepared to assist Toyota and other manufacturers with expanding parts manufacturing, enhancing the Philippines competitiveness as an automotive hub.

The government's commitment to the automotive industry was also reinforced by President Marcos Jr., who highlighted the importance of skilled Filipino workers and their ability to produce high-quality vehicles. The new Tamaraw is expected to cater to both commercial and public transportation sectors, providing versatile options such as drop-side, utility van, and aluminum van variants. These vehicles will be offered with both petrol and diesel engine options, with advanced technology focused on safety, cost-efficiency, and environmental sustainability.

Additionally, President Marcos Jr. has emphasised the need for continued support for the electric vehicle (EV) industry, signaling a strategic shift toward modernizing the automotive sector. His administration has instructed relevant government agencies to expedite the implementation of action plans for the development of electric vehicles, further aligning with global trends toward sustainability and eco-friendly transportation.

The next-generation Toyota Tamaraw is slated for market availability by January 2025, with a starting price of under PHP 800,000. This launch not only revives an iconic Filipino vehicle but also supports the administration's goal of enhancing the country's position as a global leader in automotive manufacturing, generating new opportunities for innovation, growth, and employment.

With initiatives like the CARS program and an emphasis on both traditional and electric vehicle manufacturing, the Philippines is poised to play a larger role in the global automotive industry, offering a more competitive and sustainable local vehicle market for Filipino consumers.