President Ferdinand Marcos Jr. has signed Executive Order No. 121, creating the Electric Vehicle Incentive Strategy (EVIS) Program. It is a PHP 60 billion push to get EV manufacturers building cars in the Philippines.
Announced on July 30 by Palace Press Officer Clarissa Castro, the order operationalizes the Electric Vehicle Industry Development Act, also known as EVIDA or Republic Act No. 11697. Here is what the program actually offers, who qualifies, and what it means for the local auto industry.
What EO 121 does
The EVIS Program provides fiscal incentives for the local manufacture of hybrid and battery electric passenger cars, commercial vehicles, and their parts and components.
The stated goals: expand domestic EV production, create quality jobs, cut dependence on imported fossil fuels, and position the Philippines as a regional automotive manufacturing hub.
The program was already vetted before it reached the Palace. The Fiscal Incentives Review Board (FIRB) approved the EVIS through Resolution No. 009-26 dated May 18, 2026, making it part of the manufacturing component of the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), the national plan mandated under EVIDA.
The PHP 60 billion incentive package
The program has a maximum incentive ceiling of PHP 60 billion, with up to PHP 15 billion available for each enrolled EV model, subject to the annual budget process.
Qualified manufacturers may register up to two EV models. In case of oversubscription, an inter-agency committee recommends the top four applicants based on fiscal and economic impact.
Incentives are not handed out as cash. Eligible participants receive non-transferable Tax Payment Certificates, which may be used to settle income tax, excise tax, value-added tax, and import duties with the national government.
Two types of incentives
Participants can access two kinds of support. Fixed Investment Support (FIS) covers a percentage of capital expenditures for tooling, equipment, research and development, engineering changes, start-up expenses, and training costs, excluding land.
The rate depends on the technology. Manufacturers of battery electric vehicles (BEVs) and their parts and components receive FIS equivalent to 40 percent of eligible capital expenditures, while manufacturers of hybrid, plug-in hybrid, and fuel-cell electric vehicles receive 30 percent.
Production Volume Incentive (PVI) adds up to 12 percent of the ex-factory unit price, capped at PHP 200,000 per unit, for participants that produce complete EV units, manufacture mandatory parts and components, and hit a minimum planned production volume of 10,000 units.
FIS is available for a maximum of 10 years from the date of registration of the enrolled models. PVI is also capped at 10 years, counted from the start of production.
Who qualifies
Applicants must undertake new investments in EV manufacturing, commit at least PHP 5 billion in capital, and introduce their locally manufactured EV models to the domestic or export market within three years of registration.
Registration may also require posting a performance bond, with the amount to be determined by the Board of Investments (BOI) in consultation with the inter-agency committee.
The BOI leads implementation, supported by the Inter-Agency Committee on Electric Vehicle Industry Development (IAC-EV).
The committee is chaired by the BOI at the undersecretary level, with members from the Department of Finance, Department of Energy, Department of Transportation, and Department of Budget and Management.
Participants cannot double dip. EO 121 bars companies from claiming incentives for the same activity under other government incentive programs.
Regular monitoring ensures participants meet their investment commitments and production targets.
Failure to comply, including failing to make the required investment or missing the three-year market introduction deadline, can mean refund, suspension, or forfeiture of fiscal support, cancellation of registration, and fines.
Why this is different from past programs
The PHP 60 billion package is the largest vehicle manufacturing incentive program in Philippine history, surpassing the PHP 27 billion Comprehensive Automotive Resurgence Strategy (CARS) launched in 2015.
Unlike CARS, EVIS deliberately bypasses rigid minimum production quotas, giving early adopters more flexibility. Mitsubishi Motors Philippines has already mapped out hybrid EV assembly plans for its Laguna plant, signaling that automakers are paying attention.
The order takes effect immediately upon its publication in the Official Gazette or a newspaper of general circulation. It was signed on July 29 by Marcos, with Ralph Recto attesting as Acting Executive Secretary, and published on the Gazette site the following day.
Marcos has separately pushed for 10 percent of government vehicles to be EVs, part of a broader push for a more environment friendly transport system.
What it means for Filipino buyers
The long term promise is more locally assembled EVs, which usually means lower prices and better parts availability than fully imported units.
For now, the program targets manufacturers first. Consumers benefit indirectly: local assembly creates jobs, builds the supply chain, and over time gives buyers more EV options at more competitive prices.
Whether PHP 60 billion is enough to turn the Philippines into a real EV manufacturing hub depends on how many companies actually commit the PHP 5 billion minimum and deliver on their production targets. The window is open, and the first movers are already lining up.
