Philippines Launches ₱60-Billion Electric Vehicle Incentive Program to Lower EV Prices by Up to ₱200,000
The Philippine government has implemented Executive Order No. 121, establishing a comprehensive framework for the Electric Vehicle Incentive Strategy (EVIS) program designed to stimulate domestic manufacturing and assembly of electric vehicles and associated components.
The EVIS framework provides two principal incentive categories for participating manufacturers. Fixed Investment Support (FIS) reimburses capital expenditure up to 40 percent for battery-powered electric vehicles, while Production Volume Incentives (PVI) provide reimbursements extending to 30 percent for hybrid, plug-in hybrid, and fuel cell electric vehicle variants.
Production Volume Incentives additionally offer reimbursements reaching 12 percent of unit pricing, with individual vehicle compensation capped at ₱200,000. The government has allocated ₱60 billion in total fiscal support for the program, establishing a maximum allocation of ₱15 billion per enrolled model platform, with program validity extending across a 10-year period.
Beyond direct manufacturing assistance, participating enterprises receive non-transferable Tax Payment Certificates enabling reduction of various tax obligations, including income taxes, excise duties, value-added taxes, and import tariffs.
Automakers seeking participation must satisfy stringent qualification criteria, including minimum capital investment of ₱5 billion, production commitments of no fewer than 10,000 units, compliance with domestic and internationally recognized safety specifications, and market introduction of enrolled vehicle models within a three-year window. Participants must additionally commit to comprehensive after-sales service delivery infrastructure encompassing battery recycling and circular economy initiatives.
The Department of Energy projects that declining production and logistics expenses will facilitate significant retail price reductions, with consumer savings potentially reaching 6 to 12 percent, or equivalently up to ₱200,000 depending on specific vehicle configuration and actual program execution outcomes.
The initiative has already demonstrated market traction with major automotive manufacturers confirming participation. Mitsubishi Motors Philippines has pledged ₱7 billion in capital investment to upgrade its Sta. Rosa, Laguna manufacturing facility for hybrid and electric vehicle production operations.
Energy Secretary Sharon Garin emphasized the program's anticipated benefits, including expanded electric vehicle market availability, employment generation for Philippine residents, vehicle price reductions, and decreased national reliance on petroleum fuel imports through accelerated adoption of zero-emission mobility solutions.
Program implementation will be coordinated through an inter-agency committee overseeing execution in partnership with relevant government agencies. The Department of Energy indicated complementary efforts to expand nationwide EV charging infrastructure and implement supplementary measures encouraging broader electric vehicle market penetration.
Beyond manufacturing cost reduction, the program represents strategic policy supporting the Philippines' energy security objectives and environmental sustainability commitments through transportation sector decarbonization.