Toyota Motor Philippines Corp. (TMP) has formalized its intention to enroll the Tamaraw model with the Philippine Economic Zone Authority (PEZA) under a new government automotive program that provides incentives to vehicle manufacturers.
PEZA Director-General Tereso Panga said in a text message on Sunday that TMP recently sought PEZA’s assistance as it plans to participate in the RACE (Revitalizing Automotive Industry for Competitiveness Enhancement) Program, administered by the Board of Investments (BOI).
Panga referred to a July 11, 2025, press statement in which TMP indicated that it was awaiting the issuance of a Joint Administrative Order (JAO) on the RACE by the Department of Trade and Industry, the Department of Finance, and the Department of Budget and Management.
The JAO outlines the rules and guidelines for participating in the RACE Program, TMP said.
TMP added that its Toyota Supplier Network—which provides parts, materials, and services to the Toyota Group—welcomes and anticipates RACE, recognizing the program as “a critical catalyst in parts localization.”
The automotive giant stated that its network believes it will sustain the capability gains achieved under the previous Comprehensive Automotive Resurgence Strategy (CARS), in which TMP was also a participant.
TMP noted that local production of the Tamaraw has significantly strengthened the domestic supply chain, tapping 44 Tier 1 suppliers and integrating 14 Tier 2 suppliers.
For the Tamaraw, TMP has invested ₱5.5 billion, while the Toyota Supplier Network has earlier announced plans to inject ₱500 million for plant capacity expansion, according to TMP.
“Just like the CARS program, RACE will provide fiscal support to local manufacturers of vehicles. This will ultimately support parts makers supplying the car assemblers. Toyota—as in the predecessor CARS program—stands to benefit from RACE,” Panga said.
Panga was quoted in the TMP press statement as saying this RACE initiative supports the government’s “Tatak Pinoy” strategy, describing it as key to enhancing automotive manufacturing and empowering local industries.
In 2024, Toyota Group suppliers generated $1.2 billion in export revenues, representing 30 percent of the Philippines’ total exports of original equipment manufacturing (OEM) parts and components.
TMP sold a record 218,000 units in 2024, capturing a 46 percent share of the 474,000 units sold nationwide that year.
According to the BOI’s concept paper, RACE will apply to three specific models of four-wheeled internal combustion engine vehicles, with a commitment to produce 100,000 units over the course of the program.
RACE will offer a time-bound direct subsidy based on capital expenditure and production volume of qualified automotive manufacturers, the paper said.
Each participant will be eligible for fiscal support in the form of a tax payment certificate, not exceeding ₱3 billion, for capital expenditure on tooling and equipment to manufacture the RACE model. Entrants may also receive fixed investment support equivalent to up to 40 percent of capital expenditure.
