By Beatriz Marie D. Cruz, Senior Reporter
THE Department of Trade and Industry (DTI) said it’s dropping the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program to focus its efforts on providing incentives to electric vehicles (EV) makers.
“The CARS (Comprehensive Automotive Resurgence Strategy) program is already finished, so we focused on EVs,” Trade Secretary Ma. Cristina A. Roque told reporters on the sidelines of the DTI National Food Fair on Wednesday.
RACE had sought to offer fiscal support of P9 billion for the domestic manufacture of three specific four-wheel models powered by internal combustion engines (ICE) if the makers produce 100,000 units each. They represented an easing of the quota from the 200,000-unit quota of CARS.
The DTI had expressed hopes to release the Electric Vehicle Incentives Strategy by the second quarter. This system seeks to permit the federal government to offer competitive fiscal and non-fiscal support to spice up the EV supply chain.
“We’re still attempting to fix every part but we’re hoping to release it soon, especially with the situation today,” Ms Roque said.
The federal government is trying to deal with attracting EV manufacturers to the Philippines as rising oil prices attributable to the Iran war boost the attractiveness of EVs as an alternative choice to ICE vehicles.
The Department of Finance said on Monday that Mitsubishi Motors Corp. is planning to ascertain a dedicated hybrid electric vehicle manufacturing facility inside the Mitsubishi Motors Philippines Corp. plant in Santa Rosa, Laguna.
“For now, wala nang RACE,” Ms. Roque said.
Launched in 2015, the CARS program sought to offer tax incentives to a few automobile corporations that domestically produced at the least 200,000 units between 2018 and 2024.
President Ferdinand R. Marcos, Jr. vetoed P4.32 billion in unprogrammed appropriations meant for the CARS program and P250 million for the RACE program.
Automotive sales are expected to breach 500,000 units this yr, featuring strong demand for EVs and multi-purpose vans, the Chamber of Automotive Manufacturers of the Philippines, Inc. said in January.