Pres. Ferdinand Marcos Jr. has signed Executive Order No. 121 establishing a P60-billion incentive program aimed at attracting investments in electric vehicle manufacturing in the Philippines.
The Electric Vehicle Incentive Strategy (EVIS) Program will provide fiscal support to qualified manufacturers of hybrid vehicles, battery-electric passenger cars, commercial electric vehicles, and specialized automotive parts and components.
Participating manufacturers may enroll up to two EV models, with incentives capped at P15 billion for each model. The entire program has a maximum incentive ceiling of P60 billion, subject to annual government budget allocations.
Support will cover capital investments in domestic manufacturing plants and production lines, as well as incentives linked to specific local production targets.
Instead of receiving cash grants, qualified manufacturers will be issued tax payment certificates that may be used to settle national taxes and import duties.
Companies seeking to join the program must commit at least P5 billion in new investments and begin producing registered EV models locally within three years.
They must also meet prescribed production quotas and submit to monitoring of their investment and manufacturing commitments.
The structure makes access to incentives dependent on actual investment and production performance, addressing concerns that fiscal support for vehicle manufacturers may not necessarily result in sustained domestic output or a stronger local supply chain.
The Board of Investments will lead the implementation of the program, including the registration of manufacturers, monitoring of production quotas, and distribution of incentives.
It will coordinate with an inter-agency committee composed of the departments of Finance, Energy, Transportation, and Budget and Management.
The executive order positions EV manufacturing as part of the government’s industrial policy and its effort to reduce dependence on imported petroleum. But observers say its impact will depend on whether manufacturers will establish substantial local operations rather than rely mainly on imported vehicles and components.
