PRESIDENT Ferdinand Marcos Jr. has signed an order establishing the Electric Vehicle Incentive Strategy (EVIS) Program to boost local manufacturing of electric vehicles (EVs) and attract investments through fiscal incentives.
Executive Order (EO) No. 121, which provides fiscal incentives for the local manufacture of hybrid and battery electric passenger cars, commercial vehicles, and their parts and components, was issued on July 29.
The EVIS Program aims to expand domestic EV production, create quality jobs, reduce the country’s dependence on fossil fuels, and position the Philippines as a regional automotive manufacturing hub.
In a statement on Friday, Finance Secretary and Finance Secretary and Fiscal Incentives Review Board (FIRB) chair Frederick Go lauded the issuance of EO 121, the describing it as “a major step toward developing a globally competitive electric vehicle (EV) manufacturing industry in the Philippines.”
The program offers up to P60 billion in fiscal support to qualified manufacturers and is expected to reduce the country’s dependence on imported fossil fuels, accelerate the transition to cleaner energy, and strengthen long-term energy security.
“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,” Go said.
Under the Program, participating manufacturers may register up to two EV models and qualify for either Fixed Investment Support (FIS) or Production Volume Incentives (PVI), subject to investment and performance requirements. It incorporates strict monitoring and compliance mechanisms, including performance bonds and safeguards against the double availment of incentives under the CREATE MORE Act.
The EO covers manufacturers of Hybrid Electric Vehicles (HEVs) and Battery Electric Vehicles (BEVs), as well as their accredited parts manufacturers.
The government aims to enroll up to four participating EV manufacturers into the program, with fiscal support capped at P15 billion per EV model. Registered participants must introduce locally manufactured EVs to the domestic or export market within three years from registration.
The Department of Trade and Industry (DTI), the Board of Investments (BOI), and the Department of Finance (DOF) worked closely with the FIRB, and other government agencies in designing the program to ensure that fiscal support is tied to measurable economic outcomes.
In a separate statement, Trade Secretary Cristina Roque said the DTI welcomes the signing of EO 121, which she described as “a landmark policy that strengthens the Philippines’ position as an emerging hub for electric vehicle manufacturing in the region.”The Trade chief said the EVIS Program represents a strategic investment in the future of Philippine manufacturing. (GMA News)
