BIZ BUZZ: Staying in the Race

Electric vehicles (EVs) may have become the automotive industry’s latest darling, but manufacturers of conventional cars are hoping the government still has room in its plans for the engines that continue to power most of the local market.

That hope took a hit in April when the Department of Trade and Industry (DTI) said it would no longer pursue the proposed Revitalizing the Automotive Industry for Competitiveness Enhancement (Race) program, which was intended to support the production of conventional vehicles.

Instead, it opted to focus on the Electric Vehicle Incentive Strategy (Evis), a scheme aimed at attracting investments in EV manufacturing.

Still, local automakers are not quite ready to write Race off.

For the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi), support for EV production should not come at the expense of conventional vehicle manufacturing, which continues to account for the bulk of vehicle sales in the country.

“We hope that the government would consider Race in support of ICE production,” Campi president Jose Maria Atienza said. “We’re hopeful that some support for local production, including Tamaraw and ICEs, will be put in place.”

Atienza, who also serves as executive vice president of Toyota Motor Philippines Corp., argued that while demand for EVs has accelerated in recent months, conventional vehicles continue to dominate key segments of the market, particularly among small businesses.

One example is Toyota’s locally assembled Tamaraw, which Atienza said could benefit from an ICE-focused incentive program should the government decide to revisit the proposal.

“If you ask us, that’s what we need. Something similar to Cars,” he said, referring to the Comprehensive Automotive Resurgence Strategy, the government’s previous automotive incentive program that supported local vehicle manufacturing, including Toyota’s Vios sedan.

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Toyota has yet to indicate whether it will participate in Evis. But when it comes to advocating for incentives for conventional vehicle production, Atienza made it clear the company was not backing down.

“Toyota has not given up,” he said. “We never give up. And we shouldn’t give up if we really want to strengthen or expand our manufacturing operations here.”