Move over, CARS; it’s now time to RACE. Word that president Ferdinand “Bongbong” Marcos, Jr. has no plan of further extending the Comprehensive Automotive Resurgence Strategy (CARS) program first implemented under the administration of Benigno “Noynoy” Aquino III, are proven true as the government is rolling out the Revitalizing Automotive Industry for Competitive Enhancement or RACE.
Love for acronyms aside, RACE and CARS are similar in that they offer a time-bound subsidy based on capital expenditure and production volume of qualified automotive manufacturers.
Toyota is the first carmaker who intends to enroll in RACE with its next-generation Tamaraw.
TMP says that it is waiting for the Joint Administrative Order (JAO) by the Department of Trade and Industry, Department of Finance, and Department of Budget and Management. The JAO shall outline the rules and guidelines for participation in the RACE Program.
Even without RACE, Toyota Motor Philippines reported that the decision to locally produce the Tamaraw has resulted in a significantly boosted supply chain—engaging 44 Tier 1 suppliers and integrating 14 Tier 2 suppliers.
TMP’s investments amount to P 5.5 billion while the Toyota Supplier Network has earlier shared plans to inject P 500 million for plant capacity expansion, anticipating the success of such light commercial vehicle model in the domestic market.
TMP president Masando Hashimoto reported that Toyota Group export suppliers significantly contributed USD 1.2 billion in export revenues in 2024, maintaining 30 percent share of total Philippine exports of Original Engineering Manufacturing (OEM) parts and components.
For his part, PEZA Director General Tereso Panga acknowledged TMP’s support to the Philippine government’s “Tatak Pinoy” Strategy through the Toyota Tamaraw, seeing it as crucial for enhancing automotive manufacturing and empowering local industries.
Toyota Motor Philippines Corporation (TMP), together with key members of the Toyota Group export suppliers, recently presented a comprehensive report to the Philippine Economic Zone Authority (PEZA) during the 26th Toyota Special Economic Zone (TSEZ) Update Meeting held in June 2025 in Parañaque City.
Hopefully that would attract other manufacturers back? :/
ReplyDeleteUnfortunately, the subsidy provided by this program probably won't be enough to do that. As much as people like to villainize the chinese goverment for their subsidies, that's kind of what a govenrment needs to shell out to justify building/investing in manufacturing in your country.
DeleteRACE? Should be RAICE instead.
ReplyDeleteI presume Mitsubishi will also join RACE since it was part of CARS. I hope Mitsu will submit Destinator and New Gen Xpander as its bet for this.
ReplyDelete