The head of an auto parts makers group said the government‘s decision to stop an incentive program aimed to increase local production of conventional vehicles and parts would hurt the sector.
“When I first heard that they will drop RACE and focus on EVIS, I had mixed feelings since we wanted to still incentivize whatever remaining completely knockdown assembly we have. These models are still saleable to our local market,” Philippine Parts Makers Association (PPMA) president Ferdi Raquelsantos told The Manila Times on Thursday.
Raquelsantos was referring to the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which would supposedly take over the Comprehensive Automotive Resurgence Strategy (CARS) with P9 billion in fixed investment support and tax certificates to automakers producing at least 100,000 units of internal combustion engine vehicles.
On Wednesday, Trade Secretary Cristina Roque said the administration would instead prioritize the Electric Vehicle Incentives Strategy (EVIS) to encourage the rollout of up to nine million EVs, including two-wheelers, three-wheelers, passenger cars, buses, and trucks, and 400,000 charging stations between 2028 and 2040.
EVIS is seen to draw P120 billion in investments, generate 680,000 jobs, and narrow the cost gap between EVs and traditional motor vehicles.
An executive order outlining the implementation of EVIS, including its fiscal and non-fiscal incentives, is expected to be issued within three months.
The decision to drop RACE came after its proposed P250-million budget was vetoed from the 2026 national budget. The program failed to secure a funding source.
Raquelsantos had hoped RACE would continue the objective of CARS.
“The CARS program was very successful for the Toyota Vios and Mitsubishi Mirage, giving local parts makers breathing space to survive in the last six years. Our manufacturing capabilities went to a higher level,” he said.
However, Raquelsantos — who is also chairman emeritus of the Electric Vehicle Association of the Philippines (EVIDA) — is likewise supportive of Mitsubishi Motor Philippines Corp.‘s (MMPC) joining the EVIS program.
“When we lobbied for EVIDA, we requested for at least five years of tax incentives (zero tariff and zero excise tax), which also mandates DTI to come up with a program for EVs. We are now on the fourth year and we’ve been hoping to see an EV manufacturer for passenger cars and commercial vehicles to start local production,” he said.
