Gov’t eyes P60-billion EV incentives

By Beatriz Marie D. Cruz, Senior Reporter

THE PHILIPPINE government is looking to earmark P60 billion to support the local manufacturing of electric vehicles (EVs), with the Department of Trade and Industry citing rising fuel costs and the need to reduce reliance on gasoline-powered vehicles.

Based on recent consultations with prospective investors on the proposed Electric Vehicle Incentive Strategy (EVIS), a government program aimed at attracting EV manufacturers and boosting local production, the government plans to provide fiscal support of P15 billion per participant for the domestic production of four-wheeled EVs.

The package will cover makers of battery EVs (BEVs), plug-in hybrid EVs (PHEVs), and hybrid EVs. The details of the framework have yet to be finalized.

On the sidelines of the Manila International Auto Show on Thursday, Trade Undersecretary Ceferino S. Rodolfo said the government is focusing its efforts on incentivizing EV makers in the Philippines amid growing demand for electrified vehicles.

“Given the increasing fuel prices and the logistics cost of importing vehicles into the country rather than in-country production, those producing here would benefit,” he told reporters.

The government plans to release the executive order for the EVIS before President Ferdinand R. Marcos, Jr.’s State of the Nation Address in July, Mr. Rodolfo said.

EV makers would also benefit from the Philippines’ ecosystem of parts manufacturers and workers that can support their assembly facilities, he added.

The proposed package under EVIS is larger than the P9 billion earmarked under the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, the government’s initiative to incentivize the local production of internal combustion engine (ICE)-powered cars.

Trade Secretary Ma. Cristina A. Roque said on Wednesday that the government is dropping the RACE program to focus on providing incentives to EV makers.

The RACE program was meant to be a successor to the recently concluded Comprehensive Automotive Resurgence Strategy (CARS), which sought to incentivize manufacturers of four-wheeled vehicles.

Mr. Marcos vetoed P4.32 billion worth of unprogrammed appropriations in the 2026 national budget for the CARS program and P250 million for the RACE program.

The government is seeking to attract more EV manufacturers to the Philippines, as oil price volatility caused by Middle East tensions positions EVs as an alternative to ICE-powered cars.

Mr. Rodolfo also said another automotive player is looking to set up an EV manufacturing plant in the country, but he did not disclose details.

Earlier this week, the Department of Finance said Mitsubishi Motors Corp. is planning to establish a hybrid electric vehicle manufacturing facility within Mitsubishi Motors Philippines Corp.’s plant in Santa Rosa, Laguna.

In a statement, the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said it is optimistic that the government and the private sector can ensure an attractive environment for both EV and ICE carmakers.

“We look forward to the continued collaboration between the government and the private sector in developing an attractive environment for local production of various vehicle types, including electrified and ICE vehicles, as aligned with local market needs,” it said.

To further boost EV adoption, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said affordability and charging infrastructure remain key.

“The EVIS signals a clear policy pivot toward electric mobility and future-oriented manufacturing. This will likely support EV demand over time, as stronger incentives, ecosystem development, and investor interest make EVs more accessible and viable locally,” he said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government’s shift to incentivizing EV makers is a “timely move” as the Philippines grapples with oil price and supply uncertainties.

“The granting of incentives must be more circumspect and prudent, all the more now where the priority is to secure more and at least conserve the country’s oil/petroleum/energy supply,” he said in a Viber message.

Total EV sales jumped by 66.9% to 5,701 units as of end-February from 3,416 units in the same period last year, according to a joint report by the CAMPI and the Truck Manufacturers Association.