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President Ferdinand Marcos Jr. signed an order establishing the Electric Vehicle Incentive Strategy Program to ramp up EV production and attract more investments
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Executive Order No. 121, signed on July 29, outlines fiscal incentives for the local manufacture of hybrid and battery electric passenger cars, commercial vehicles as well as their parts and components
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Program implementation will be led by the Board of Investments with an inter-agency committee
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Mitsubishi Motors Philippines Corporation, a long-time economic zone locator in the country, reaffirmed its commitment to support the program with a P7-billion investment
President Ferdinand Marcos Jr. signed an order establishing the Electric Vehicle Incentive Strategy (EVIS) Program aimed at ramping up EV production in the country and attract more investments in the automobile industry.
Executive Order (EO) No. 121, signed on July 29, outlines fiscal incentives for the local manufacture of hybrid and battery electric passenger cars, commercial vehicles as well as their parts and components.
“The EVIS Program shall provide time-bound, targeted, performance-based, and transparent fiscal support to encourage strategic investments in domestic EV manufacturing,” the order stated.
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Qualified manufacturers may register up to two EV models and receive two types of incentives: Fixed Investment Support (FIS) to help establish or expand manufacturing facilities, and Production Volume Incentives (PVI) to encourage local production.
Instead of cash grants, eligible participants will receive Tax Payment Certificates, which may be used to settle certain national taxes and import duties.
To qualify, participants must undertake new investments, commit at least P5 billion in capital, meet production targets, and introduce their locally manufactured EV models within three years from registration.
The EVIS Program has a maximum incentive ceiling of P60 billion, with up to P15 billion available for each enrolled EV model, subject to the annual budget process.
The order also provides for regular monitoring of registered participants to ensure compliance with their investment commitments and production targets.
Inter-agency committee
The Board of Investments will lead the implementation of the program, with support from the Inter-Agency Committee on Electric Vehicle Industry Development (IAC-EV) that will include the Department of Finance, Department of Energy, Department of Transportation, and Department of Budget and Management.
Among the IAC-EV’s functions are evaluating applications for registration under the EVIS Program, recommend the issuance of a Certificate of Registration, assess participants’ eligibility, and recommend approval of incentives.
The IAC-EV may also recommend the withdrawal or forfeiture of the fiscal incentive if the registered participant fails to comply with the terms and conditions of its certificate.
Manufacturers may register up to two EV models under the EVIS Program.
Mitsubishi commitment
Mitsubishi Motors Philippines Corporation (MMPC), a long-time economic zone locator in the country, cheered the order as it reaffirmed its commitment to support the program.
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“Backed by Mitsubishi Motors Corporation’s PHP7-billion investment commitment, 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,” Noriaki Hirakata, MMPC chair, said in a media statement.
“Through this investment, we look forward to creating greater value for the Philippine economy, supporting the country’s sustainability objectives, generating opportunities across the automotive ecosystem, and contributing to the continued growth of local vehicle manufacturing,” he added.
In April this year, Mitsubishi Motors Corporation already announced its intention to participate in the EVIS during a meeting in Japan between Marcos and Takao Kato, global chief executive officer of Mitsubishi Motors.
The mother company announced then that it plans to start manufacturing a new hybrid electric vehicle (HEV) model at its plant in Santa Rosa City, Laguna, around the middle of 2028.
“The Philippines has long been one of our most important markets, where we have engaged in production and sales for many years. In cooperation with the Philippine government, we are honored to contribute to the advancement of vehicle electrification and industrial development through the EVIS program, as well as to support the further growth of the Philippine economy,” Kato said.
