Philippine Government Nears Launch of P60-Billion EV Incentive Program to Boost Local Manufacturing

 

The Philippine government is moving closer to rolling out a large-scale incentive framework designed to accelerate domestic electric vehicle manufacturing, signaling a major policy shift toward industrial modernization and energy resilience.

According to Frederick Go, the proposed Electric Vehicle Incentive Strategy or EVIS is now advancing through the final stages of interagency coordination. While no exact launch date has been confirmed, officials indicated that momentum behind the initiative has intensified.

The proposal has already been presented to Bongbong Marcos, with the Board of Investments continuing consultations with agencies under the Fiscal Incentives Review Board. That group includes the Department of Finance, Department of Trade and Industry, Department of Budget and Management, Department of Economy, Planning and Development, and the Office of the President.

What distinguishes EVIS from previous automotive programs is its strategic focus. Rather than rewarding manufacturers solely for hitting production quotas, the government appears to be prioritizing long-term industrial investment and supply chain development. The approach reflects a broader understanding that the EV industry is not merely about assembling vehicles. It is about building an ecosystem that includes battery technology, parts manufacturing, workforce training, charging infrastructure, and energy transition planning.

Under the proposed structure, the government is preparing a P60-billion fiscal incentive package targeted at manufacturers of four-wheeled electric vehicles. Eligible participants may include producers of battery electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles.

The plan is expected to accommodate four qualified participants, each potentially receiving up to P15 billion in fiscal support in exchange for committing investments to local EV production facilities.

Compared with the earlier Comprehensive Automotive Resurgence Strategy or CARS program, EVIS represents a significantly larger commitment. The CARS initiative allocated P27 billion and required participating firms to manufacture at least 200,000 units of an enrolled vehicle model within six years before qualifying for government support.

EVIS removes that production volume requirement entirely.

That policy adjustment could prove decisive. High-volume thresholds often favor established global manufacturers with massive production capacity, while discouraging newer entrants still testing regional demand. By removing rigid output mandates, the government may be attempting to attract a broader range of investors, including emerging EV brands seeking an entry point into Southeast Asia.

Trade officials previously stated that the executive order formalizing EVIS could be released before the President’s State of the Nation Address in July. Cristina Roque also emphasized the urgency of the initiative amid rising global fuel prices linked to tensions in the Middle East.

That context matters. Elevated fuel costs tend to accelerate consumer interest in electric mobility, particularly in urban markets where operating expenses heavily influence transportation decisions. For policymakers, EV adoption is increasingly viewed not only as an environmental objective but also as an economic buffer against volatile oil markets.

If implemented successfully, EVIS could become one of the Philippines’ most aggressive industrial incentive programs in recent years, positioning the country to compete more directly in the rapidly expanding regional EV sector.