After CARS, RACE awaits resolution of funding uncertainty

By Justine Irish D. Tabile, Reporter

THE Department of Trade and Industry (DTI) said the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program is next in line for a funding solution to resolve the uncertainty created by a Presidential veto that defunded two programs supporting automakers.

On the sidelines of the Management Association of the Philippines (MAP) Inaugural Meeting 2026, Trade Secretary Ma. Cristina A. Roque said that talks are still taking place with regard to its implementation.

“We are still talking about the RACE program inuna lang namin ’yong CARS program (CARS was tackled first) because (those funds are) what needs to be given out,” she said on Monday.

“The DTI will push for (RACE) implementation. We are working on it, to be honest, at the moment,” she added.

The RACE program was meant to replicate the earlier Comprehensive Automotive Resurgence Strategy (CARS) program by offering similar incentives such as fiscal support on capital expenditure used for tooling and equipment and fixed investment support.

It was to be implemented through a joint administrative order to be issued by the DTI along with the departments of Finance and Budget and Management.

However, funding for the RACE program was among the unprogrammed funds vetoed by President Ferdinand R. Marcos, Jr., including the P4.32-billion fiscal support for the Comprehensive Automotive Resurgence Strategy (CARS) program.

“(Funding) for the CARS program has been resolved … This is critical because if the investors know that the incentives are coming, then of course, they would want to invest in the Philippines,” she added.

She said a supported automotive industry helps related industries like auto parts.

Created through Executive Order No. 182, the CARS program was meant to attract new investment to revitalize the automotive industry through the provision of performance-based incentives.

Two manufacturers have signed up: Toyota Motor Philippines (TMP) Corp., which produces the Vios sedan, and Mitsubishi Motors Philippines Corp., which manufactures the Mirage hatchback and Mirage G4 sedan.

On Monday, TMP also welcomed the government’s clarification on its fiscal means “and reaffirmed commitment to honor its obligations under the CARS program.”

“TMP sincerely appreciates the government’s decisive action to reassure investors and stakeholders who have long supported the Philippine automotive manufacturing industry,” it said in a statement.

“This move reinforces confidence in the country as a sustainable base for automotive manufacturing,” it added.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) also welcomed the funding solution for the program incentives.

“This gives renewed confidence in our industrial policy and puts the automotive sector back on track for long-term investment planning,” it said in a statement.

“CAMPI and its members look forward to the implementation of the RACE program, which will be instrumental in industry recovery and growth,” it added.