Government revives RACE program

MANILA, Philippines — The government is reviving the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which aims to incentivize the production of fuel-powered cars, according to the Department of Trade and Industry (DTI).

Trade Secretary Cristina Roque told reporters yesterday that the RACE is back on the table.

This marks a turnaround from her pronouncement in April that the program was scrapped in favor of the Electric Vehicle Incentive Strategy (EVIS), which aims to incentivize EV production.

“We will give the guidelines very soon,” Roque said.

Asked what triggered the policy shift, Roque said the government has been discussing incentives it could provide to support vehicle production.

“The Marcos administration really wants to offer incentives for both EV and combustion (engine vehicles),” she said.

While the government recognizes the importance of EVs amid rising fuel prices, she said that there are internal combustion engine (ICE) vehicles like the Tamaraw, being used by many micro, small and medium enterprises (MSMEs) and even those providing public safety services.

“That has no counterpart EVs now,” she said.

The RACE is intended to be the successor of the Comprehensive Automotive Resurgence Strategy (CARS) program, which provided incentives in exchange for investments and the production of at least 200,000 units of the enrolled vehicle model within six years.

Firms that took part in the CARS program include Toyota Motor Philippines Corp. (TMP) for the Vios and Mitsubishi Motors Philippines Corp. for the Mirage.

Roque said the RACE would not exactly be the same as the CARS program, but will provide incentives for the production of ICE vehicles to encourage investments in the country.

Earlier, Japanese automaker Toyota Motor Corp. urged the Philippine government to support the local manufacture of vehicles of all technologies to help strengthen MSMEs and protect jobs in the sector.

TMP also said earlier it was looking to enroll the Tamaraw under the RACE program.

Last month, Finance Secretary Frederick Go said the EVIS is expected to be released soon.

Based on consultations conducted by the DTI, the government is looking at a P60-billion fiscal incentive package under the proposed EVIS.

The proposed EVIS will be open to four participants that produce four-wheeled EVs such as battery electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles.