THE government may finalize its Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program shortly, Trade Secretary Cristina Roque said.
“Just a little more. Maybe within next month, it should be done,” Roque noted, saying the program is undergoing final touches.
RACE is an initiative that will provide fiscal support to locally manufactured internal combustion engine (ICE) vehicles. Participating automakers will be required to locally assemble 100,000 units of specific four-wheeled vehicle models.
The program earmarks P9 billion in total fiscal support, with each participating company eligible to receive up to P3 billion, or 40 percent of capital expenditures.
RACE succeeds the Comprehensive Automotive Resurgence Strategy (CARS) program, which was designed to promote local vehicle manufacturing and job creation.
Roque said Toyota Motor Philippines has already expressed interest in joining RACE. The automaker earlier said it had registered its Next Generation Tamaraw under the program to increase parts localization, engage Tier 1 and Tier 2 suppliers, and strengthen the domestic automotive manufacturing industry.
The Department of Trade and Industry is also in talks with other local automakers about participating in the program.
Roque expressed optimism that more manufacturers would join, citing the incentives available under RACE.
She said it has yet to be determined whether RACE will be launched through an executive order, similar to the Electric Vehicle Incentive Strategy (EVIS).
Meanwhile, the government hopes to settle its outstanding obligations to automakers under the CARS program within the year, ahead of the rollout of RACE and EVIS, Roque said.
