The Department of Trade and Industry (DTI) is moving to revive a support program for internal combustion engine (ICE) vehicles as the government recalibrates its incentives scheme for the automotive sector.
Trade Secretary Ma. Cristina Roque said the administration is preparing to bring back the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, which is intended to provide incentives for the production and use of non-electric vehicles, particularly those still widely used in commercial and public service applications.
‘We will revive it. The government will revive it,’ Roque told reporters on Tuesday afternoon when asked about renewed calls from industry stakeholders for support beyond electrification.
She said the proposal stems from continuing discussions with industry players and recognition that the shift to electric vehicles does not yet cover all transport segments in the country.
‘We never stopped talking about possibilities and incentives we can give,’ she said.
‘We recognize electric vehicles are important, but there are still vehicles that are being produced like the (Toyota) Tamaraw and all that don’t yet have an electric counterpart,’ she added.
The DTI chief clarified that while the agency is working on guidelines for the revived program, it is not yet at the stage of executive or inter-agency approval.
‘We will issue the guidelines,’ Roque said, adding that the matter is still under internal discussion within the department.
She also said the revived program will not be identical to previous automotive incentive schemes, but will follow a similar structure of government support for local production and industry participation.
Roque added that the government’s broader direction is to support both electric and traditional vehicle segments as part of a transitional strategy for the industry.
‘The Marcos administration wants to offer incentives for both electric vehicles and commercial vehicles,’ she said.
Asked about the approval process, Roque said the program is still being refined and has not yet been elevated for final inter-agency clearance.
In April, the DTI said the government had shelved the RACE program to shift its focus toward accelerating a new incentive framework centered on electric vehicles.