Philippines offers PHP 60 billion for local EV manufacturing

By Francis Allan L. Angelo

MANILA – The Marcos administration has established a performance-based incentive program offering up to PHP 60 billion in fiscal support to attract large-scale electric vehicle investments and deepen the Philippines’ role in the global automotive value chain.

Finance Secretary and Fiscal Incentives Review Board Chair Frederick D. Go welcomed Executive Order No. 121, which created the Electric Vehicle Incentive Strategy Program, or EVIS. He described the order as a major step toward developing a globally competitive EV manufacturing industry in the country.

At stake is whether as much as PHP 60 billion in public fiscal support will translate into measurable investments, quality jobs, stronger local supply chains, and locally manufactured vehicles.

The program is also intended to reduce the country’s dependence on imported fossil fuels, accelerate the transition to cleaner energy, and strengthen long-term energy security.

The FIRB approved the EVIS Program in May 2026 as a targeted, performance-based incentive framework for EV manufacturers.

Go thanked President Ferdinand R. Marcos Jr. for advancing the initiative, saying the executive order reflected the administration’s commitment to future-ready industries that can generate quality employment, drive industrial transformation, and support long-term economic growth.

“The EV Incentive Strategy sends a clear signal that the Philippines is ready to compete for the next generation of automotive investments. 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,” he said. “We thank President Ferdinand R. Marcos Jr. for his steadfast leadership and vision in making this initiative possible.”

The Department of Trade and Industry, Board of Investments, Department of Finance, FIRB, and other government agencies jointly designed the program.

The agencies sought to ensure that fiscal support would be tied to measurable economic outcomes rather than granted without corresponding investment and production commitments.

Participating manufacturers may register as many as two EV models under the program.

Qualified companies may receive either Fixed Investment Support or Production Volume Incentives, subject to investment and performance requirements.

The program includes monitoring and compliance measures such as performance bonds.

It also contains safeguards against the double availment of incentives under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, or CREATE MORE Act.

Executive Order No. 121 covers manufacturers of hybrid electric vehicles and battery electric vehicles.

Accredited manufacturers of parts for the covered vehicles may also participate in the program.

The government aims to enroll as many as four EV manufacturers.

Fiscal support is capped at PHP 15 billion for each registered EV model, subject to the program’s overall PHP 60 billion ceiling.

Registered manufacturers must introduce their locally produced EVs to the domestic or export market within three years of registration.

The incentive strategy builds on Republic Act No. 11697, or the Electric Vehicle Industry Development Act, which established the national policy framework for EV manufacturing, utilization, charging infrastructure, parts, batteries, and related services.

“Through EVIS, we are laying the groundwork for a globally competitive EV manufacturing ecosystem – one that will attract high-quality investments, strengthen local supply chains, support our energy security goals, and create more opportunities for Filipino workers. This is a strategic step toward building the country’s industrial future,” Secretary Frederick Go added.