Government eyes P60 billion fiscal support for EVs

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

April 10, 2026 | 12:00am

MANILA, Philippines — The government is looking to provide a more generous fiscal package worth P60 billion for a program aimed at encouraging electric vehicle (EV) production in the Philippines, according to the Department of Trade and Industry (DTI).

Based on its consultations with the industry, the DTI said it is looking at a P60 billion fiscal incentive package for the proposed Electric Vehicle Incentive Strategy (EVIS).

Trade Undersecretary and Board of Investments managing head Ceferino Rodolfo told reporters yesterday that the government is currently finalizing the executive order (EO) for the EVIS.

He said the EO is expected to be issued “before the SONA (State of the Nation Address),” which will take place in July.

The proposed EVIS will have four slots with each participant receiving P15 billion worth of fiscal support in exchange for investments in EV manufacturing.

It will be open to manufacturers of four-wheeled EVs such as battery electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles.

Unlike the government’s previous vehicle manufacturing incentive program, the Comprehensive Automotive Resurgence Strategy (CARS) program, the proposed EVIS does not set a production volume target for participants.

The government’s proposed fiscal package for the EVIS is also higher than the P27 billion allotted for the CARS program.

Under the CARS program, the government offered fiscal support to participating firms that invest and produce at least 200,000 units of their enrolled vehicle model within six years.

While the government was initially working on a successor program to the CARS called the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program, Trade Secretary Cristina Roque said the government has decided to drop the plan and focus on supporting EV manufacturing.

Under the proposed RACE, the aim was to support the production of four-wheeled internal combustion engine vehicle models.

Roque said the government wants to fast-track the release of the EO on EVIS in light of the Middle East conflict that has driven the surge in fuel prices.

Rodolfo said the country has been seeing rising EV demand, providing a compelling reason to set up manufacturing facilities here.

“The one who will establish a facility here in the Philippines would clearly convey that they would be supporting the consumers…all the way,” he said, citing the importance of parts availability and after-sales support.

Ferdinand Raquelsantos, chairman emeritus at the Electric Vehicle Association of the Philippines and president of the Philippine Parts Makers Association said that he has mixed feelings on the government’s decision to drop the RACE and focus on EVIS.

“We wanted to still incentivize whatever remaining CKD (completely knock down) assembly we have. These models are still saleable to our local market,” he said.

He said the CARS program enabled the country to raise its manufacturing capabilities to a higher level for both original equipment manufacturers and local parts makers.

However, he welcomed the push for EVIS, noting this would boost local manufacturing.

Earlier this week, Mitsubishi Motors Corp. announced plans to locally manufacture a new hybrid electric vehicle model in the Philippines by 2028 after its application for the EVIS was approved.

“With the addition of Mitsubishi hybrid production and with the possibility of export market, this will truly revive and rejuvenate our local automotive Industry,” Raquelsantos said.

Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Jose Maria Atienza said that the group welcomes the government’s initiatives to support local automotive manufacturing as exemplified by the recently concluded CARS program and now, the proposed EVIS.

“The auto industry rapidly evolves in step with the changing requirements of the Filipino motorists in terms of powertrain, configuration, utility, price point and more,” he said.

“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 internal combustion engine vehicles as aligned with local market needs,” he said further.

He said CAMPI also welcomes Mitsubishi’s announcement of its intention to locally manufacture a hybrid electric vehicle.

“A new manufacturing investment creates jobs, promotes local technology transfer and supports the sustainability of the local parts manufacturing industry,” he said.