The government prepares to launch the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program to sustain and expand local vehicle manufacturing.
It also represents a sequel to the current incentives regime under the Comprehensive Automotive Resurgence Strategy (CARS) program.
The Department of Trade and Industry (DTI) is finalizing the new incentives program, according to Secretary Frederick Go, the Special Assistant to the President for Investment and Economic Affairs.
“The previous administration came up with the CARS program. But we want to continue promoting the vehicle industry, so the DTI is working on the RACE program,” Go said in an interview late Tuesday.
He described RACE as “CARS 2.0,” underscoring its role in supporting local manufacturers.
The CARS program, established in 2015 under Executive Order 182, provided performance-based fiscal support to attract investment in automotive production.
Participating manufacturers Toyota Motor Philippines and Mitsubishi Motors Philippines were required to produce at least 200,000 units of specific vehicle models within six years to qualify for incentives.
The program contributed to the local automotive sector by generating about 100,000 jobs and increasing localization rates to 40 percent.
Building on these gains, the RACE program aims to further enhance the industry’s competitiveness by encouraging manufacturers to integrate more locally sourced components into vehicle production.
Toyota’s Tamaraw and Mitsubishi’s Expander are expected to be among the first models registered under the initiative.
“We’re only giving incentives if you create jobs for Filipinos,” Go said, adding that the program aligns with the administration’s broader industrial investment strategy.
The 2025 General Appropriations Act allocated P250 million to support RACE, he said.
Go also noted that the government is exploring parallel efforts to develop an electric vehicle industry in the Philippines, recognizing its potential for growth alongside traditional automotive manufacturing.