DTI drops Race program, shifts focus to EVs

The Department of Trade and Industry (DTI) is scrapping plans to roll out the Revitalizing the Automotive Industry for Competitiveness Enhancement (Race) program, opting instead to focus on incentives for electric vehicle (EV) production.

Trade Secretary Cristina Roque said on Wednesday that the government would proceed directly with the Electric Vehicle Incentive Strategy (Evis), effectively replacing the Race program as the offshoot to the Comprehensive Automotive Resurgence Strategy (Cars) program.

“Diretso nang Evis. For now, wala nang Race, (We would go straight to Evis. For now, there will be no more Race),” Roque told reporters.

This move follows months of uncertainty over Race funding after its proposed P250-million budget was excluded from the 2026 spending plan following Pres. Marcos’ veto of unprogrammed appropriations.

Unlike its predecessor Cars, which drew funding from verified savings under the 2025 budget of the Department of Public Works and Highways, Race failed to secure a dedicated funding source.

Race is a P9-billion program aiming to provide up to P3 billion in fiscal incentives to carmakers committing to produce 100,000 units of internal combustion engine vehicles.

It was designed to sustain momentum from the P27-billion Cars program introduced in 2015, which drew the participation of major car manufacturers Toyota and Mitsubishi.

Shift to EVs

Roque said the decision to drop Race signals a policy shift toward electrified transport.

“We want investors who are going to make EVs here in the Philippines, so we give them incentives,” she said.

Details of the Evis package are still being finalized, pending an executive order from the President, although the program was earlier expected to be broader than previous automotive incentive schemes and could match or exceed the scale of the Cars program.

See Also

Yuchengco group switches on P1.8-B Isabela solar park 

Roque said she expects the order to be issued within three months.

Even ahead of formal rollout, automakers are positioning for Evis. Mitsubishi Motors Corp., for instance, plans to produce what could be the Philippines’ first locally manufactured hybrid vehicle by mid-2028 under the scheme.

This comes amid Filipinos’ growing appetite for EVs, with sales growing 18.7 percent month-on-month to 3,098 units in February from 2,610 in January.

Year to date, EV sales surged 66.9 percent to 5,701 units, up from 3,416 units a year earlier.