THE Department of Trade and Industry (DTI) said that it expects to complete by mid-March a joint administrative order (JAO) that will implement a new auto industry revival program.
According to the department, the rules for the new program, known as Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE), will be outlined in a JAO to be issued by the DTI and the departments of Finance and Budget and Management.
“The program mechanics are contained in a program concept that was submitted to Congress for approval and consideration in the 2025 General Appropriations Act, which we got,” the DTI said.
“Hence, the drafting of the JAO to implement the program. We’re expecting to complete the JAO by mid-March and open the application period for participants by April or May this year,” it added.
The Office of the Special Assistant to the President for Investment and Economic Affairs had signaled earlier this week that the government would soon introduce RACE, a follow-on program to the Comprehensive Automotive Resurgence Strategy program, which focused on encouraging domestic manufacturing of mass-market economy sedans.
RACE is meant to “sustain the viability of the automotive sector, particularly the manufacture of ICE (internal combustion engine) vehicles during the transition to electric vehicles, through targeted investments and support,” according to a RACE briefing document.
The RACE program will involve the production of three specific models of four-wheeled ICE vehicles, with participants committing to manufacture 100,000 units.
Participating carmakers will be eligible for fiscal support of up to P3 billion each on capital expenditure for tooling and equipment.
Each participant is also entitled to fixed investment support of up to 40% of capital expenditure, subject to meeting requirements, which include new investment in manufacturing the enrolled model and the 100,000-unit commitment.
Other requirements for availing of fixed investment support include the launch of the model within two years.
The investment support will be credited in three equal tranches, with the first tranche given after the production of the first 1,000 units, the second after the first 10,000 units, and the third after the second 10,000 units.
“Both Toyota and Mitsubishi signified their intention to enroll under RACE. They are just waiting for the JAO and opening of the application period,” Ma. Corazon Halili-Dichosa, executive director at the Board of Investments, said. — Justine Irish D. Tabile
