The Philippine government has scrapped its long-planned Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, opting instead to fast-track a new incentive framework focused on electric vehicles, a senior investment official said.
Ceferino Rodolfo, managing head of the Board of Investments (BOI), confirmed to Context.ph that RACE will no longer proceed, signaling a decisive shift in industrial policy. He declined to provide details, but earlier statements from economic managers have underscored the urgency of attracting fresh investments and positioning the country for emerging automotive technologies.
The move marks a clear pivot away from supporting conventional vehicle manufacturing toward building a domestic electric vehicle (EV) ecosystem.
Both RACE and the proposed Electric Vehicle Incentives Strategy (EVIS) were designed to strengthen the local automotive sector, but they diverge sharply in scope and direction.
RACE, as outlined in earlier drafts, aimed to revive domestic automotive production by incentivizing manufacturers of internal combustion engine vehicles.
The program, to be administered by the Department of Trade and Industry through the BOI, would have granted fiscal perks to firms meeting volume commitments. However, its implementing rules—targeted for release in early 2025 via a joint memorandum order—never materialized.
EVIS, by contrast, is structured to align with the Electric Vehicle Industry Development Act and to catalyze a broader EV value chain. Draft provisions include a mix of fiscal and non-fiscal incentives covering electric cars, buses and two-wheelers, as well as key components such as batteries, motors, power electronics and charging infrastructure.
The program is now awaiting approval by the Fiscal Incentives Review Board, with sources indicating that an executive order to operationalize EVIS could be issued soon.
The policy shift comes as industry players begin to position for the transition. Mitsubishi Motors Philippines Corp., for instance, is planning to manufacture a hybrid electric vehicle in Sta. Rosa, Laguna starting in 2028 under the EVIS framework.
Abandoning RACE in favor of EVIS underscores the government’s strategy to leapfrog legacy manufacturing and anchor the Philippines’ automotive future on electric mobility.
