RACE program abandoned; incentive focus shifts to EVs

By Beatriz Marie D. Cruz, Senior Reporter

THE Department of Trade and Industry (DTI) said it is dropping the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program to focus its efforts on providing incentives to electric vehicles (EV) makers.

“The CARS (Comprehensive Automotive Resurgence Strategy) program is already finished, so we focused on EVs,” Trade Secretary Ma. Cristina A. Roque told reporters on the sidelines of the DTI National Food Fair on Wednesday.

RACE had sought to provide fiscal support of P9 billion for the domestic manufacture of three specific four-wheel models powered by internal combustion engines (ICE) if the makers produce 100,000 units each. They represented an easing of the quota from the 200,000-unit quota of CARS.

The DTI had expressed hopes to release the Electric Vehicle Incentives Strategy by the second quarter. The program seeks to allow the government to provide competitive fiscal and non-fiscal support to boost the EV supply chain.

“We’re still trying to fix everything but we’re hoping to release it soon, especially with the situation today,” Ms Roque said.

The government is looking to focus on attracting EV manufacturers to the Philippines as rising oil prices caused by the Iran war boost the attractiveness of EVs as an alternative to ICE vehicles.

The Department of Finance said on Monday that Mitsubishi Motors Corp. is planning to establish a dedicated hybrid electric vehicle manufacturing facility within the Mitsubishi Motors Philippines Corp. plant in Santa Rosa, Laguna.

“For now, wala nang RACE,” Ms. Roque said.

Launched in 2015, the CARS program sought to provide tax incentives to three car companies that domestically produced at least 200,000 units between 2018 and 2024.

President Ferdinand R. Marcos, Jr. vetoed P4.32 billion in unprogrammed appropriations meant for the CARS program and P250 million for the RACE program.

Car sales are expected to breach 500,000 units this year, featuring strong demand for EVs and multi-purpose vans, the Chamber of Automotive Manufacturers of the Philippines, Inc. said in January.