President Marcos has greenlighted a P60-billion incentives package aimed at luring electric vehicle (EV) manufacturers to produce their units in the Philippines, as the government drives to position the country as a regional automotive manufacturing hub.
Executive Order (EO) No. 121, signed by Marcos on July 29 but made public only on Thursday, puts into effect the Electric Vehicle Incentive Strategy (Evis), the country’s largest incentives package to date for car manufacturers.
This program, which provides up to P15 billion in fiscal support for each enrolled EV model, is meant to spur the production of what would be the first Philippine-made EV.
‘The program seeks to create more jobs, attract new investments, strengthen local manufacturing, reduce the country’s dependence on imported oil, and position the Philippines as a key player in the global electric vehicle supply chain,’ Palace press officer Claire Castro said in a briefing on Thursday.
Evis will cover the manufacture of hybrid and battery electric vehicles, particularly passenger cars and commercial vehicles, as well as their parts and components. These incentives will be in the form of nontransferable Tax Payment Certificates, which can be used to settle income tax, value-added tax, excise and import duty obligations to the national government.
Four slots are available, and each car manufacturer may enroll up to two EV models.
Evis’ incentives package covers up to 40 percent of eligible startup costs for battery EV manufacturing and 30 percent for hybrid, plug-in hybrid and fuel-cell EVs.
Manufacturers may also receive production incentives of up to 12 percent of the ex-factory price, capped at P200,000 per locally manufactured vehicle, for up to 10 years from the start of production.
That production incentive is available only to manufacturers that commit to locally producing complete EV units or their required parts and components, and maintain a minimum production capacity of 10,000 units.
PH-made EVs
To qualify, manufacturers must also commit at least P5 billion in new investments and introduce their enrolled EV models to either the domestic or export market within three years of registration.
Applicants will also be assessed based on their planned production volume, expected economic impact, compliance with safety standards and after-sales support, including battery recycling and spare parts availability for at least 10 years.
Already, Mitsubishi Motors Philippines Corp. has announced plans to invest P7 billion to locally produce hybrid EVs at its manufacturing plant in Santa Rosa, Laguna. But the company has yet to say which, or how many, models it plans to enroll under Evis.
‘We are ready to support the government’s vision through the local production of hybrid electric vehicles, further enhancing the country’s manufacturing capabilities and competitiveness,’ Mitsubishi Philippines chair Noriaki Hirakata said in a statement.
Growing demand
EO 121 tasks the Board of Investments with leading the implementation of the Evis program and overseeing the evaluation of applicants through a newly created Inter-Agency Committee on Electric Vehicle Industry Development, which will include representatives from the Department of Finance, Department of Energy, Department of Transportation, and Department of Budget and Management.
Evis’ rollout comes amid growing demand for EVs in the Philippines, partly driven by elevated fuel prices.
EV sales surged 132.7 percent to 31,381 units in the first half of 2026, in contrast to an 11.4-percent decline in sales of internal combustion engine vehicles to 204,557 units over the same period.
Edmund Araga, president of the Asian Federation of Electric Vehicle Associations, said the ‘very anticipated’ approval of Evis aligns with the country’s EV roadmap and provides a boost to a ‘very promising industry.’
‘It really shows that the government is really serious in promoting the use of EVs in the Philippine market,’ Ariaga said in a message to the Inquirer