Special Assistant to the President for Investment and Economic Affairs, Secretary Frederick Go, revealed that the Department of Trade and Industry (DTI) is currently working on an improved version of its Comprehensive Automotive Resurgence Strategy (CARS), dubbed the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, to further entice car companies to establish manufacturing operations in the country.

The Board of Investments, the investment promotion arm of the DTI, has been boasting that the CARS program has helped the domestic automotive industry survive, especially local parts makers.

In an ambush interview on Monday, Secretary Go said that RACE is a better version of CARS, offering incentives to new car models that will be manufactured in the Philippines.

Furthermore, the RACE program is aimed at increasing the domestic sourcing of locally assembled vehicles enrolled in the program.

“We're only giving incentives if you give jobs to the Philippines,” according to Go, noting that the Marcos Jr. 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, to encourage 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 at its Santa Rosa, Laguna plant.

To recall, DTI encouraged Mitsubishi to bring its Xpander production to the Philippines, and just last Feb. 6, 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

Meanwhile, Secretary Go said RACE could accept more participants than CARS, which only allotted three slots for participating car models but had only two slots taken—Toyota's Vios and Mitsubishi's Mirage.

Unlike the CARS program, RACE will be a department initiative and will not need an executive order for implementation, as 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 for the RACE program.