The Board of Investments (BoI) is proposing a significant fiscal support of P9 billion for its Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.
The RACE program aims to address the continued demand for gasoline-powered vehicles, serving as a bridge between the Comprehensive Automotive Resurgence Strategy (CARS) and the Electric Vehicle Incentive Strategy (EVIS).
The Department of Trade and Industry has recently revived the RACE program in response to industry demands to continue supporting domestic production of internal combustion engine (ICE) models.
The RACE program initially sought to provide fiscal support for the domestic production of four-wheeled ICE vehicles, serving as a successor to the CARS program, which incentivized the domestic production of at least 200,000 mass-market sedans per manufacturer between 2018 to 2024.
Finance Secretary Frederick D. Go has stated that the proposed EVIS is currently being reviewed by the Office of the Executive Secretary, having hurdled the Fiscal Incentives Review Board.
Despite planning to support the production of both gasoline-powered and electric cars, Secretary Go emphasized the need to increase funding support for newer technologies like EVs, citing the premium for new technology.
The BoI is in talks with two domestic companies with foreign partners to avail of possible EVIS slots, with the Department of Trade and Industry proposing a P60-billion fiscal package for EVIS.
The package includes plans to provide fiscal support of P15 billion per participant, with Mitsubishi Motors Corp. expressing interest in the EVIS program and signaling plans to build a hybrid electric vehicle manufacturing facility in Santa Rosa, Laguna.
