4 weeks ago
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Louella Desiderio - The Philippine Star
February 19, 2025 | 12:00am
Special Assistant to the President for Investment and Economic Affairs Frederick Go told reporters that the new program, called RACE or Revitalizing the Automotive Industry for Competitiveness Enhancement, will build on the Comprehensive Automotive Resurgence Strategy (CARS) program, which involves providing incentives for the local production of vehicles.
STAR / File
MANILA, Philippines — The government is planning to roll out a new incentives program to further promote the growth of local vehicle manufacturing in the country, according to the economic czar.
Special Assistant to the President for Investment and Economic Affairs Frederick Go told reporters that the new program, called RACE or Revitalizing the Automotive Industry for Competitiveness Enhancement, will build on the Comprehensive Automotive Resurgence Strategy (CARS) program, which involves providing incentives for the local production of vehicles.
“We want to continue promoting the vehicle industry. That’s why the DTI (Department of Trade and Industry) now came up with RACE,” he said.
Similar to the CARS program, the RACE will also involve providing incentives to firms that will locally manufacture vehicles and use local components.
“We are only giving incentives if you give jobs to the Philippines,” Go said.
Under Executive Order (EO) 182 issued by the late president Benigno Aquino III for the CARS program, participating firms have to invest to produce at least 200,000 units of their enrolled vehicle model within six years to receive fiscal support from the government.
While an EO was issued for the CARS program, Go said the RACE would not be needing one for its implementation, with this year’s budget allocating funding for the program.
The government has allotted P250 million for the implementation of the RACE under the 2025 General Appropriations Act.
Go also said the RACE could accommodate more participants compared to the CARS, which was limited to only three slots.
Despite having three slots, the CARS program had only two participants: Toyota Motor Philippines Corp. (TMP) for the Vios and Mitsubishi Motors Philippines Corp. for the Mirage.
The same companies can be candidates for the new incentives program.
TMP earlier announced that it has invested P5.5 billion for the production of the new Tamaraw, which it launched late last year.
In 2023, the DTI said it was encouraging Mitsubishi to expand its local manufacturing operations in the country by producing the Xpander.
As the country continues to face challenges in automotive manufacturing, including the diminishing auto parts sector, the Philippine Parts Makers Association (PPMA) said there is a need for immediate government action to support local manufacturers and strengthen the automotive supply chain.
The group emphasized the significant role that the automotive industry plays in generating economic activity and employment.
“Our industry is in peril. We must urgently adopt measures to revitalize our auto parts manufacturing capabilities or we will continue to fall behind our ASEAN (Association of Southeast Asian Nations) neighbors,” PPMA president Ferdinand Raquelsantos said.
