Toyota cites need for vehicle mix flexibility

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April 12, 2026 | 12:00am

As government drops race program

MANILA, Philippines — Toyota Motor Philippines Corp. (TMP) has expressed support for the government’s overall push for local vehicle manufacturing, but cited the need for vehicle model flexibility to ensure program success.

In a statement, TMP said it supports the Philippine government’s goal of advancing the local automotive manufacturing industry, while promoting economic and environmental sustainability.

However, TMP emphasized that vehicle mix flexibility would be key to the success of the government’s automotive manufacturing program.

TMP issued the statement following the government’s decision to drop the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program in favor of the proposed Electric Vehicle Incentive Strategy (EVIS).

The RACE program was being developed as a successor program to theComprehensive Automotive Resurgence Strategy (CARS) program to incentivize the manufacture of internal combustion engines.

Meanwhile, the proposed EVIS will support the manufacture of four-wheel EVs.

“The local automotive manufacturing is a key economic driver with its multiplier effect in employment generation, OEM (original equipment manufacturer) supplier investments, technology transfer and manpower skills upgrade,” TMP said.

However, it emphasized the importance of economies of scale to locally manufacture vehicles at a competitive price.

“Therefore, flexibility in vehicle model or engine type is critical for each participant to carefully consider,” TMP said.

It cited the success of the six-year implementation of the CARS program, which provided incentives to participants in exchange for vehicle manufacturing investments.

TMP said the CARS has been a win-win for both the government and the private sector, including TMP and its supplier network.

“We anticipated the RACE to be another win-win collaboration and industry lifeline program, which could eventually enable customers to enjoy competitive pricing for vehicles with an ever-better powertrain technology – whether internal combustion or electrified,” the company said.

Despite the government’s decision to scrap the RACE, TMP said it is ready to work with the government in navigating economic challenges, particularly those linked to the global energy security situation.