Govt’s new auto incentives program to accept applications starting April
—GRIG C. MONTEGRANDE / INQUIRER
MANILA, Philippines — The government’s planned incentives program for automotive vehicle manufacturers is expected to begin accepting applications in two to three months’ time, paving the way for more vehicle companies to get state support for their operations.
Board of Investments (BOI) Manufacturing Industries Service Acting Director Ronaldo Buluran told the Inquirer that the implementation for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program will be contained in a joint administrative order instead of an executive order for easier implementation.
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The joint issuance will be among the Department of Trade and Industry (DTI), the BOI’s parent agency, the Department of Finance (DOF), and the Department of Budget and Management
“We’re expecting to complete the joint administrative order by mid-March and open the application period for participants by April or May this year,” Buluran said.
He added that the program mechanics are contained in a program concept that was submitted to Congress for approval and consideration in the 2025 General Appropriations Act.
In late January, Trade Secretary Ma. Cristina Roque shared the existence of the program, describing it as a “government initiative that incentivizes the development of energy-efficient and eco-friendly vehicles.”
The trade chief said that Mitsubishi Motors Philippines Corporation, which has the second largest market share in the country in terms of sales, had requested to be included under the incentives scheme.
Earlier this week, Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) told reporters that the RACE program would provide incentives to automotive firms that will manufacture their vehicles in the country.
“We want to help build the local automotive industry,” Go said, noting that there is local capability to build vehicles in the Philippines.
Before this new program, the government had launched the Comprehensive Automotive Resurgence Strategy (CARS) program in 2015, a P27-billion incentives program for local automotive manufacturers.
The government had two participating companies under the program, Toyota Motor Philippines Corp. (TMPC) and the Mitsubishi Motors Philippines Corp. (MMPC), the local units of two of the biggest Japanese car brands.
Under the agreement, both were required to locally produce 200,000 units of the Toyota Vios and the Mitsubishi Mirage models within six years after starting production in 2018 to avail of the tax incentives.
