By Brian Campued
Fresh from his 5th State of the Nation Address (SONA) pronouncements, President Ferdinand R. Marcos Jr. has issued Executive Order (EO) No. 121, establishing the Electric Vehicle Incentive Strategy (EVIS) program aimed at attracting investments in electric vehicle (EV) manufacturing in the Philippines.
Issued by the President on July 29, the new EO provides incentives for the local manufacture of hybrid and battery electric passenger cars, commercial vehicles, and their parts and components.
In his EO, Marcos Jr. underscored the need to “seize market opportunities arising from the global transition to electric mobility” and position the Philippines as a regional automotive manufacturing hub.
He added that expanding domestic EV production will “contribute to sustainable economic growth and the attainment of the State’s energy security and environmental objectives,” as it reduces the country’s dependence on fossil fuels.
“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.
Under the program, 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, participating companies will receive Tax Payment Certificates, which may be used to pay certain national taxes and import duties.
To qualify, manufacturers must undertake new investments of at least P5 billion, meet production targets, and launch locally manufactured EV models within three years of registration.
The government has allocated a maximum incentive ceiling of P60 billion for the program, with up to P15 billion available for each enrolled EV model, subject to the annual budget process.
Palace Press Officer Claire and Undersecretary Castro, in a press briefing Thursday, noted that local EV production is expected to generate more employment opportunities across multiple industries.
“Kapag dito sila nag-invest at gumawa ng mga sasakyan, mas maraming trabaho para sa mga Pilipino, mula sa engineers, technicians, factory workers, logistics hanggang sa local suppliers,” Usec. Castro said.
“Sa kabuuan, ang layunin ng EO ay lumikha ng mas maraming trabaho, makahikayat ng bagong investment, mapalakas ang local na manufacturing, mabawasan ang pagdepende natin sa imported na langis, at iposisyon ang Pilipinas bilang mahalagang parte ng global EV supply chain.”
President Marcos Jr., in his penultimate SONA on July 27, highlighted significant measures to encourage the adoption of electric vehicles in the country, such as the removal of tariffs on EVs until 2028 and mandating the government to prioritize electric-powered vehicles in their refleeting plans and in transport initiatives such as the Love Bus and M/B Dalaray.
“This clean and green policy is two-pronged: it shall also spur growth of our domestic local industries across the EV value chain, specifically those involved in the vehicle assembly and manufacturing of batteries and related spare parts,” he said.
“Mithiin natin na sa pagdating ng 2040, kalahati ng mga sasakyan natin ay EV na.”
-jpv
