The decision to scrap the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program has drawn a measured response from Toyota Motor Philippines Corp. (TMP), the country’s largest vehicle assembler, which had been preparing for the initiative’s rollout as early as last year.
In a statement issued Thursday, TMP reaffirmed its support for the government’s push to strengthen domestic automotive manufacturing while advancing economic and environmental sustainability.
The response came after Trade Secretary Cristina Roque announced that incentives originally earmarked for RACE would instead be redirected toward electric vehicles (EVs) under the planned Electric Vehicle Incentive Strategy (EVIS).
Despite backing the broader policy direction, TMP highlighted key structural concerns, stressing that economies of scale remain essential for any industry support program to succeed.
The company also pointed to the importance of policy flexibility—particularly in allowing a range of vehicle models and powertrain technologies. Such adaptability, TMP suggested, could have enabled RACE to support both traditional internal combustion engine (ICE) vehicles and the government’s gradual shift toward electrified mobility.
“We anticipated the RACE to be another win-win collaboration and industry lifeline program,” TMP said, adding that it could have helped consumers access more competitively priced vehicles with improved powertrain technologies, whether conventional or electrified.
TMP reiterated the automotive sector’s role as a key economic engine, citing its multiplier effects on job creation, supplier investments, technology transfer, and workforce development.
However, the company cautioned that without sufficient scale, competitiveness would be difficult to achieve.
“For a competitive price to be feasible and for such an industry program to succeed, economies of scale are critical,” TMP said, adding that flexibility in vehicle models and engine types remains a central consideration for industry players.
Even so, TMP struck a cooperative tone, signaling its willingness to work with the government as it recalibrates policy. The company said it remains aligned with national goals and prepared to navigate ongoing economic headwinds, including those linked to global energy security.
