The electric vehicle industry is pushing the government to extend fiscal and non-fiscal incentives through 2040, saying a longer policy runway is needed to drive wider adoption and support the country’s long-term electrification targets.
Electric Vehicle Association of the Philippines (EVAP) Vice President Carla Buencamino said the industry welcomes legislative efforts to keep incentives in place beyond their current timelines, arguing that support should continue as the market transitions from conventional vehicles.
“Our targets go as high as the DOE’s targets extend until 2040,” Buencamino said. “So for the industry, hopefully, the incentives will last until 2040 so that people can continue to grow and adapt to electric vehicles.”
“We have to sustain, if not even further improve, what these incentives are,” she added.
EVAP has conveyed its position to the government, with the group favoring continued tariff-free treatment and tax exemptions for EVs.
Buencamino said incentives should cover the wider electrification ecosystem, not just vehicles. This includes charging infrastructure, power generation, and other investments needed to support a larger EV fleet.
The industry is also urging the government to accelerate the electrification of its own vehicle fleet and use public procurement to create demand for EVs.
“What we are asking in EVAP is that the government does its share,” Buencamino said. “For the government to be the first … to do the adoption itself.”
A larger government EV fleet could provide a more predictable source of demand while giving businesses and consumers a working example of the technology, she said.
For businesses, Buencamino said EV adoption could also reduce operating costs and exposure to fuel-price volatility while helping companies meet sustainability goals.
The push comes as the Philippines seeks to build an EV market that extends beyond vehicle sales to supporting industries such as charging, energy, components, and related services.
For EV makers and investors, a longer incentive horizon could provide greater certainty for decisions involving imports, assembly, charging networks, and other infrastructure.
Buencamino said sustained government support would be critical as consumers and businesses gradually adapt to electric mobility.
The industry’s position is that incentives should remain in place until the market is sufficiently developed to sustain adoption without policy support, aligning government measures with the Department of Energy’s 2040 electrification outlook.
