A week after securing funding to settle the incentives under the Comprehensive Automotive Resurgence Strategy (CARS) program, the government is keen to find a solution to revive the budget for another automotive incentive program.

Trade Secretary Cristina Roque said the government is now discussing potential funding schemes to finally kickstart the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program.

“We're hoping for that definitely,” Roque told reporters when asked if the government could address the vetoed budget of RACE this year.

“But I can't really say when, we need to finish the discussions first,” she added.

Earlier this month, President Ferdinand “Bongbong” Marcos Jr. vetoed the ₱250-million allocation for the RACE program under this year’s national budget.

Marcos also thumbed down the ₱4.32-billion budget for the CARS program, but the government later secured a funding solution through unused funds from the Department of Public Works and Highways (DPWH) and savings from last year’s national budget.

Roque said CARS was given priority since the government is working to fulfill its obligations to investors under the program. The entire budget was earmarked for fiscal support arrearages in the form of tax payment certificates (TPCs), which participants can use to settle their tax and duty obligations.

She added that RACE, which serves as the successor to CARS, is still on the government’s radar due to its importance in strengthening the country’s automotive manufacturing base.

“We really have to continue giving incentives to entice the investors to the Philippines because they need to invest here,” said Roque.

“Aside from the income that it provides our country, it's also the jobs that it provides. So we need to keep on giving incentives like this RACE program,” she said.

RACE, which the secretary described as the “better version” of CARS, plans to grant up to ₱3 billion in incentives to support the production of four-wheeled internal combustion engine vehicle models in the country.

The program would require participants to manufacture 100,000 units to be eligible, lower than CARS’ production requirement of 200,000 units.

The Philippine Parts Makers Association (PPMA) said it would require only ₱125 million to initiate and operationalize RACE, half the funding vetoed by Marcos.

PPMA President Ferdi Raquelsantos said the amount could already help unlock substantial benefits for the automotive industry, especially for local automotive parts manufacturers who are key contributors to industrial growth.

“PPMA believes RACE is the natural complement to CARS, as it strengthens the domestic supply chain by supporting investments in tooling, technology upgrades, quality and safety certifications, productivity improvements, and local content expansion,” said Raquelsantos in a statement.

The industry group expects RACE to enable more Filipino parts makers to participate in local vehicle production and compete with neighboring countries in Southeast Asia.