The domestic automotive industry has not given up hope that the government will still consider pursuing a performance-based incentive program or retain the reportedly shelved RACE (Revitalizing the Automotive Industry for Competitiveness Enhancement) program to sustain local manufacturing of traditional internal combustion engine (ICE) vehicles.
Jose Maria “Jing” Atienza, president of the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), explained to reporters covering the opening of the 10th Philippine International Motor Show on Thursday the importance of sustaining domestic vehicle manufacturing.
Earlier, however, the Board of Investments (BOI) said it was no longer pursuing RACE and would instead focus on the Electric Vehicle Incentive Strategy (EVIS). Atienza, however, said the industry has not given up hope that the government will reconsider RACE or introduce another platform to support ICE vehicle production.
“First of all, local production is very important,” Atienza said. While electric vehicles are a clear priority for government support in local manufacturing, he said the domestic market still requires production of both EVs and ICE vehicles.
“Both are important. So, as a CAMPI, our position is what’s good for the customers because there’s demand for ICE’s, especially for the likes of micro, small and medium enterprises looking for their pickup trucks or low engine displacement vehicles,” he said.
“We hope that the government will consider RACE in support of ICE production as well. Of course CAMPI is always hopeful that they reconsider,” he said.
Atienza noted the continuing demand for multi-purpose and commercial vehicles such as the Toyota Tamaraw, Mitsubishi L300, one-ton pickup trucks, and smaller-displacement vehicle models.
He said these types of commercial vehicles remain popular and serve an important purpose, particularly in the provinces.
What is clear, he said, is that the Philippine car industry will keep on growing. “It will grow. The basics are there. And of course, later on, it may make better sense if you produce locally,” he said.
“So we really appreciate the support of the government. And we hope that we can expand this to a broader mix of models. Hopefully another program,” he added, noting that RACE remains under discussion.
While he could not speak for other automotive brands, Atienza said that Toyota Motor Philippines (TMP), where he also serves as executive vice president, does not receive any special incentives or government support program for the production of the Tamaraw.
Should the government introduce another performance-based incentive program for ICE vehicles or pursue the RACE, Atienza said TMP would participate through its Tamaraw production program.
