A NEW auto industry revival program due next month will offer up to P3 billion in incentives for each participant in a bid to continue the momentum of a previous plan encouraging domestic manufacturing, the Board of Investments (BoI) said.
“I was informed that the joint administrative order on Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) is almost done and will be issued next month,” BoI Executive Director for Industry Development Services Ma. Corazon Halili-Dichosa said via Viber.
The predecessor to RACE was the Comprehensive Automotive Resurgence Strategy (CARS) program, which incentivized the domestic assembly of compact cars targeted at the mass market.
“The issuance of the CARS Program under Executive Order No. 182 contributed to the achievement of the desired localization levels among the participants and the development of the capabilities of the parts manufacturing industry,” according to a briefing paper on the program.
RACE will have a P250-million budget in the 2025 General Appropriations Act.
“The Philippine automotive industry has significant potential for growth and innovation. However, it faces challenges such as limited local manufacturing capabilities and increasing competition within the ASEAN region,” according to the briefing paper.
According to the Department of Trade and Industry (DTI), RACE will be carried out via a Joint Administrative Order (JAO) for easier implementation.
The DTI has said that it and the departments of Finance and Budget will issue the JAO, and will open the application period for potential participants by next month or May.
As in CARS, RACE will incentivize domestic production in exchange for a commitment from participants to produce 100,000 units of four-wheel internal combustion engine vehicles each. — Justine Irish D. Tabile