EV incentive program launched to boost local manufacturing

President Ferdinand R. Marcos Jr. has signed an executive order creating a new incentive program designed to attract investments in electric vehicle (EV) manufacturing, strengthen the country’s industrial base and position the Philippines as a regional hub in the global EV supply chain.

Executive Order (EO) 121, signed on Wednesday, adopts the Electric Vehicle Incentive Strategy (EVIS) Program, which offers time-bound, performance-based, and transparent fiscal incentives to encourage the local production of hybrid and battery-powered electric vehicles, including their parts and components.

The program aims to expand domestic EV manufacturing, deepen the country’s participation in the regional automotive supply chain, and support sustainable economic growth, energy security, and environmental objectives.

Under the EO, the Board of Investments (BOI) will serve as the lead implementing agency and will oversee the program’s implementation while submitting annual performance reports to the Office of the President.

The order also creates the Inter-Agency Committee on Electric Vehicle Industry Development (IAC-EV), composed of representatives from the BOI, the Departments of Finance, Energy, Transportation, and Budget and Management. The committee will evaluate applications, recommend the approval of incentives, and monitor participants’ compliance with program requirements.

Qualified investors must commit at least ₱5 billion in new EV manufacturing investments and introduce their registered EV models to the domestic or export market within three years to qualify for Fixed Investment Support. 

Eligible manufacturers may also receive a Production Volume Incentive of up to 12 percent of the ex-factory unit price, capped at ₱200,000 per vehicle, provided they produce at least 10,000 EV units.

The incentives may be availed of for up to 10 years and will be granted through non-transferable Tax Payment Certificates that may be used to settle national tax and duty obligations.

EO 121 sets a maximum fiscal support of ₱60 billion for the EVIS Program, with incentives of up to ₱15 billion available for each enrolled EV model.