There is a familiar sound in Philippine policymaking: an engine idling in neutral. It is neither progress nor collapse, just the quiet waste of momentum.
This is where the government’s automotive incentive programs now stand. RACE and CARS were meant to strengthen local vehicle assembly, yet both remain stalled by delays, budget constraints, and unpaid commitments.
Motor vehicle assemblers operate on timelines, not declarations. When the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program misses its March 2025 launch by eight months, doubts are inevitable. The industry is left to ask whether the program is designed to drive investment or merely to signal intent.
The National Expenditure Program for 2025 allocated P250 million for RACE, and the broader incentive package is advertised at P9 billion over time. But funding on paper does not translate automatically into funding released. In manufacturing, uncertainty is expensive. Delayed incentives weaken confidence and make it harder for Philippine plants to compete for regional production mandates.
The Comprehensive Automotive Resurgence Strategy (CARS) tells a parallel story. Tax rebates remain unsettled despite years of budgetary support. For 2025 alone, P225.63 million was allotted. Assemblers, however, are still waiting for actual payment rather than fiscal footnotes explaining why it has not arrived.
Industry sources quietly suggest that RACE is not a genuine priority, trapped in inter-agency review where programs often languish.
Officials counter with assurances that CARS arrears are being processed and that the joint administrative order implementing RACE will be issued as soon as possible. Unfortunately, that phrase has lost much of its urgency through repeated use.
The consequences go beyond balance sheets. Automotive assembly supports thousands of workers and a wide network of suppliers.
When incentives stall, expansion plans are deferred, investments are redirected, and jobs become less secure. Industrial policy is ultimately about people, not acronyms.
The contradiction is hard to ignore. The government speaks often about industrial upgrading, employment generation, and deeper integration into regional supply chains. Yet these ambitions are undermined by hesitation on the very programs meant to support them. Press releases do not keep factories running, and budget lines do not substitute for released funds.
Government efforts to resolve these delays deserve recognition. Clearing CARS arrears and finalizing RACE would help restore confidence.
But seriousness will be measured by execution. Until incentives move from promise to practice, the automotive industry will remain cautious, engines running but stationary, as competitors elsewhere continue to accelerate.
