New perks for carmakers out soon
A P9-billion new incentives program for automotive vehicle manufacturers is expected to begin accepting applications in two to three months’ time.
Board of Investments (BOI) Manufacturing Industries Service Acting Director Ronaldo Buluran told the Inquirer that the implementation of the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program would be contained in a joint administrative order instead of an executive order for easier implementation.
The order will be jointly issued by the Department of Trade and Industry, the Department of Finance and the Department of Budget and Management.
“We’re expecting to complete the joint administrative order by mid-March and open the application period for participants by April or May this year,” Buluran said.
He added that the program mechanics were contained in a program concept that had been submitted to Congress under the 2025 General Appropriations Act.
In late January, Trade Secretary Ma. Cristina Roque shared the plan to launch the new program, describing it as a “government initiative that incentivizes the development of energy-efficient and eco-friendly vehicles.”
The trade chief said that Mitsubishi Motors Philippines Corporation, which has the second largest market share in the country in terms of sales, had requested to be included in the incentives scheme.
100-K production
Earlier this week, Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs told reporters that the RACE program would provide incentives to automotive firms that will manufacture their vehicles in the country.
“We want to help build the local automotive industry,” Go said, citing local capability to build vehicles.
Based on a briefer sent by BOI Executive Director for Industry Development Services Ma. Corazon Halili-Dichosa, the program will cover the production of three specific models of four-wheeled internal combustion vehicles.
The RACE program will require commitment from participants to manufacture 100,000 units each and the enrolled model must be introduced to the market within two years.
Each participating car manufacturer is qualified for fiscal support of as much as P3 billion.
Before this new program, the government launched the P27-billion Comprehensive Automotive Resurgence Strategy program in 2015.
The government had two participating companies under the old program, the local units of Japanese car giants Toyota and Mitsubishi.
Under the agreement, Toyota and Mitsubishi were required to locally produce 200,000 units of Vios and Mirage models, respectively, within six years after starting production in 2018.
