The government is looking to accelerate the country’s electric vehicle (EV) industry with a new incentive program that it says will attract global manufacturers, strengthen local production and create quality jobs.
The Department of Finance (DOF) said Executive Order No. 121, which establishes the Electric Vehicle Incentive Strategy (EVIS) Program, introduces a targeted, performance-based incentive framework aimed at positioning the Philippines as a more competitive destination for next-generation automotive investments.
Finance Secretary and Fiscal Incentives Review Board (FIRB) Chair Frederick D. Go said the initiative aligns fiscal incentives with investment, production and innovation targets to encourage manufacturers to establish long-term operations in the country.
“The EV Incentive Strategy sends a clear signal that the Philippines is ready to compete for the next generation of automotive investments,” Go said. “Through a targeted and performance-based incentive system, we are encouraging manufacturers to build, innovate and grow in the Philippines while creating quality jobs for Filipinos.”
Approved by the FIRB in May, the EVIS Program provides up to P60 billion in fiscal incentives to qualified manufacturers of hybrid electric vehicles (HEVs), battery electric vehicles (BEVs) and accredited EV parts producers.
Qualified participants may register up to two EV models and avail themselves of either Fixed Investment Support or Production Volume Incentives, subject to investment commitments and performance targets. Government support is capped at P15 billion per EV model, with the program expected to accommodate up to four participating manufacturers.
The order also requires registered firms to introduce locally manufactured EVs to the domestic or export market within three years. It includes compliance safeguards, performance bonds and provisions preventing the double availment of incentives under the CREATE MORE Act.
Go said the program is expected to accelerate the country’s transition to cleaner transportation while expanding local supply chains, reducing dependence on imported fossil fuels, strengthening energy security and reinforcing the Philippines’ position in the global automotive value chain.
