The Philippine government is set to launch the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, with a budget of PHP9 billion aimed at supporting participating car manufacturers (PCM). The initiative will be rolled out via a Joint Administrative Order (JAO), as announced by the Department of Trade and Industry (DTI). The RACE program focuses on three specific models of four-wheeled internal combustion engines (ICE), requiring manufacturers to commit to producing 100,000 units locally. This is a more lenient target compared to the previous Comprehensive Automotive Resurgence Strategy (CARS) program, which demanded a minimum of 200,000 units. Major car companies like Toyota and Mitsubishi have expressed interest in joining the RACE program, awaiting the finalization of the JAO and the opening of the application period. Each eligible PCM can receive up to PHP3 billion in fiscal support, including a Fixed Investment Support (FIS) that covers up to 40% of their capital expenditure. To qualify for these incentives, new investments must be made in the production of the enrolled model, which should be market-ready within two years. Additionally, PCMs must continuously meet the program’s criteria and other conditions set at registration. The government will disburse the FIS in tranches: the first upon production of 1,000 units, the second after 10,000 units, and the final tranche upon reaching 100,000 units. The DTI anticipates completing the JAO by mid-March and opening applications in April or May. The JAO will be signed by the Department of Budget and Management, the Department of Finance, and the DTI.
Philippine Government to Allocate PHP9 Billion for Car Manufacturers Under New RACE Program
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