The proposed Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program remains active alongside incentives for electric vehicle (EV) manufacturers, Trade and Industry Secretary Ma. Cristina Roque confirmed on Tuesday.
RACE Program Overview
RACE aims to provide incentives to car manufacturers that establish domestic operations. Contrary to earlier reports that the program had been shelved, Secretary Roque assured that discussions are ongoing. Under the proposal, participating investors would receive incentives for manufacturing approximately 100,000 units of three specific models of four-wheeled internal combustion engine (ICE) vehicles.
The initial proposal includes fiscal support not exceeding PHP3 billion, or 40 percent of capital expenditure, per investor. Secretary Roque declined to provide further details on the latest developments, stating that more information, including guidelines, will be announced in the coming days.
Support for ICE Vehicles
“We never stop talking about the incentives that we can give. We recognize that electric vehicles are important now, but there are still vehicles being produced, like the Tamaraw and others,” Roque said. She emphasized the need to support manufacturers of four-wheeled ICE vehicles, as these are widely used by micro, small, and medium enterprises, as well as for ambulances and police vehicles.
The Department of Trade and Industry continues to balance the promotion of EV adoption with the need to sustain the traditional automotive sector, ensuring that all segments of the industry receive appropriate support.
