The country’s car development program is undergoing a major overhaul, Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go revealed.

The Department of Trade and Industry (DTI) is drafting an improved version of the Comprehensive Automotive Resurgence Strategy (CARS), to be branded as Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program to entice car makers into setting up local manufacturing operations.

The Board of Investments, the investment promotion arm of the DTI, hailed the CARS program as having helped the domestic automotive industry to thrive, especially local parts makers.

Go said that RACE is a better version of CARS which provides incentives to local car models.

Perks tied to conditions

Further, the RACE program is geared to raise the domestic sourcing of locally-assembled vehicles.

“We’re only giving incentives if you give jobs to the Philippines,” according to Go, noting that the Marcos administration is looking at investments in industry to help people and help Filipinos get jobs.

“That’s for regular vehicles. So, Toyota, Mitsubishi, Hyundai. But of course, the program is slightly different, right? But the intent is the same, that if you introduce more local components into the vehicle, then you can qualify for the RACE,” he told reporters.

Previously, President Ferdinand Marcos Jr. had a meeting with the world’s largest car manufacturers, Toyota and Mitsubishi, enticing them to manufacture car models such as the Tamaraw and the Xpander.

It was reported that Toyota Motor Philippines has invested P5.5 billion to manufacture the Tamaraw model in its Santa Rosa, Laguna plant.

To recall, DTI encouraged Mitsubishi to bring its Xpander production to the Philippines, and just last 6 February, Mitsubishi Motors Corp. president and chief executive officer Takao Kato made a courtesy call to Marcos and pledged to invest P7 billion in the country over the next five years.

More participants

Go said RACE could increase participants in the vehicle program. CARS only allotted three slots for participating car models but only two slots were used by Toyota’s Vios and Mitsubishi’s Mirage.

Meanwhile, unlike the CARS Program, RACE will be a department initiative and would not need an executive order for implementation since the new program has a budget allocation in the 2025 national budget. Under the 2025 General Appropriations Act signed by the President, the government earmarked P250-million budget for the RACE program.

More firms seen joining

Go stated that the RACE program could attract more participants to the vehicle initiative. The CARS program allocated three slots for participating car models, but only two were utilized by Toyota’s Vios and Mitsubishi’s Mirage.

Unlike the CARS program, RACE will be a department-led initiative and will not require an executive order for implementation. This is because the program has already been allocated funding in the 2025 national budget. Under the 2025 General Appropriations Act, signed by the President, the government has earmarked a P250-million budget for the RACE program.