The Department of Trade and Industry (DTI) has dropped its proposed Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, pivoting instead to an Electric Vehicle Incentives Strategy (EVIS) that channels limited state resources toward the country’s transition to electric mobility, while preserving generous fiscal perks for investors.
Trade Secretary Cristina Roque said the shift is designed to attract investments in electric vehicles (EVs), as rising geopolitical tensions in the Middle East sharpen concerns over fuel supply and price volatility.
“Investors that will make EVs will be given incentives,” Roque said, adding that the ongoing crisis underscores the urgency of moving toward electrification.
While Roque stopped short of ruling out incentives for internal combustion engine (ICE) manufacturers, she noted that the government’s earlier Comprehensive Automotive Resurgence Strategy (CARS) program has already lapsed.
Board of Investments Managing Head Ceferino Rodolfo said the government is now focusing its “finite resources” on new energy mobility, where the Philippines can compete more effectively.
Under EVIS, each participating manufacturer could receive around P9 billion, or potentially more in incentives, matching the scale previously granted under CARS.
The package includes production support covering up to 40 percent of investments in major tooling, such as molds and stamping equipment.
Rodolfo also revealed that, aside from Mitsubishi Motors Philippines Corp., another automaker is preparing to join EVIS to produce a four-wheel model, though he declined to name the firm.
To qualify, participants must meet minimum production targets within a set timeframe.
For companies that had been anticipating the RACE program, Rodolfo said the government could still extend support through incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
The government aims to issue the executive order formalizing EVIS within the year.
