The Revitalizing Automotive Competitiveness and Excellence (RACE) program will provide P9 billion in fiscal support to sustain the growth of the local automotive sector, particularly in the manufacturing of internal combustion engine (ICE) vehicles, as the industry transitions to electric vehicles (EVs), according to documents from the Board of Investments.
The program aims to attract investments and strengthen local manufacturing through targeted financial incentives.
Under the RACE Program, accredited car manufacturers can receive up to P3 billion in fiscal support per company, aimed at covering capital expenditures for tooling and equipment necessary for producing new vehicle models.
A key feature of the program is the fixed investment support (FIS), which allows participating car makers to receive up to 40 percent of their capital expenditures.
The subsidy will be released in three tranches based on production milestones. The first tranche will be distributed after the production of 1,000 units, while the second and third tranches will be credited upon reaching 10,000 units, respectively.
Fiscal support will be granted through the tax payment certificate (TPC) scheme, ensuring accountability and adherence to the program’s objectives.
Each participating manufacturer should commit to producing at least 100,000 units of a selected model within a specified timeframe.
The new model should be introduced to the market within two years, with ongoing compliance monitored through regular audits.
The RACE program also aims to develop the Philippines into a regional automotive manufacturing hub, enhancing local automotive parts production while supporting small and medium enterprises (SMEs) in the supply chain, promoting research and development in sustainable automotive technology, and generating employment opportunities for Filipinos.
The Department of Trade and Industry (DTI) will lead the program’s implementation in coordination with the Board of Investments (BOI), the Department of Finance (DOF), and the Department of Budget and Management (DBM), ensuring strict compliance with relevant laws, budgeting, and auditing regulations through a Joint Administrative Order (JAO).
