The Department of Trade and Industry (DTI) in the Philippines is on the verge of launching a new initiative aimed at drawing automotive manufacturers to establish their production facilities within the country. This new program, named Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE), is a revamped version of the earlier Comprehensive Automotive Resurgence Strategy (CARS) program, as announced by Frederick Go, the Secretary of the Office of the Special Assistant to the President for Investments and Economic Affairs (OSAPIEA). RACE is designed to offer incentives for the production of new car models in the Philippines and to enhance the use of local components in vehicles assembled under this program. Go emphasized that the incentives are contingent upon job creation within the country, aligning with the Marcos administration’s goal to foster industrial investments that benefit Filipino workers. President Ferdinand R. Marcos Jr. has been actively engaging with major car manufacturers like Toyota and Mitsubishi during his visits to Japan, encouraging them to produce models such as the Tamaraw and Xpander in the Philippines. Toyota has already committed PHP5.5 billion to manufacture the Tamaraw at its plant in Santa Rosa, Laguna. Mitsubishi, following a meeting with Marcos on February 6, pledged PHP7 billion over the next five years to produce the Xpander in the country. Unlike the CARS program, which was limited to three slots and saw only two filled by Toyota’s Vios and Mitsubishi’s Mirage, RACE is expected to accommodate more participants. Furthermore, RACE will be implemented directly by the DTI without the need for an executive order, as it is already included in the 2025 national budget with an initial allocation of PHP250 million.
New Incentives Program to Boost Automotive Manufacturing in the Philippines
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