The Philippine government is finalizing a P60-billion fiscal incentive package under its proposed Electric Vehicle Incentive Strategy (EVIS), aiming to accelerate investments in next-generation automotive manufacturing.
According to officials familiar with ongoing consultations, the program is expected to grant up to P15 billion in support to each participating electric vehicle (EV) manufacturer. The 10-year initiative is designed to accommodate four participants and will focus exclusively on four-wheel vehicle models.
The planned incentive pool significantly exceeds the scale of the earlier Comprehensive Automotive Resurgence Strategy (CARS), which provided P27 billion in total support, or roughly P9 billion each for three manufacturers.
Under the current EVIS framework, incentives will cover electrified four-wheel vehicles, including battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs). This marks a shift from earlier proposals that considered extending benefits to two- and three-wheel segments.
Unlike CARS, the EVIS program is expected to adopt a more flexible structure. It will not impose minimum production volume requirements, instead linking fiscal support to investments in critical components and systems. Industry estimates place the minimum investment threshold at around P7 billion per participant.
Trade Undersecretary Ceferino Rodolfo confirmed the government is fast-tracking the executive order establishing EVIS, targeting its signing ahead of the President’s State of the Nation Address in July.
Speaking at the Manila International Auto Show, Rodolfo described the transition to electrified mobility as a “watershed moment” for the local industry, citing growing investor interest following Mitsubishi Motors Philippines Corp.’s plan to produce a hybrid vehicle domestically.
He added that while strong demand, financing, and workforce readiness are already in place, attracting more assemblers remains critical to strengthening local production and ensuring supply resilience.
