The government is weighing a revival of incentives for internal combustion engine (ICE) vehicle manufacturers under the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, signaling a more technology-neutral approach to supporting the Philippine automotive sector.
Trade Secretary and Board of Investments (BOI) Chairman Cristina A. Roque said the Department of Trade and Industry (DTI) is studying the extension of incentives beyond electric vehicles (EVs), acknowledging that conventional vehicles remain vital to the economy.
“We keep talking about possibilities and incentives that we can provide,” Roque said, responding to questions about whether industry clamor prompted the potential reversal of an earlier decision to scrap RACE.
While the administration remains committed to promoting EV adoption, Roque emphasized that conventional vehicles continue to serve key sectors, particularly micro, small, and medium enterprises (MSMEs) and public services.
She highlighted locally assembled utility vehicles, such as the Toyota Tamaraw, which support small businesses and can be adapted for essential services, including ambulances and fire response units.
Discussions on the revival are ongoing, with guidelines being drafted. Any proposal would still require the necessary approvals and would not necessarily mirror the original RACE program or the Comprehensive Automotive Resurgence scheme.
The government aims to provide targeted support for ICE vehicle production while maintaining incentives for EV investments under the proposed Electric Vehicle Incentives Strategy (EVIS).
The potential revival of RACE underscores a broader strategy to sustain automotive investments and growth in the Philippines.
By supporting both ICE and EV technologies, policymakers hope to balance industry modernization with the realities of current market demand, ensuring that local manufacturers and service providers remain competitive in a rapidly evolving automotive landscape.
