President Ferdinand R. Marcos Jr. has signed Executive Order No. 121, establishing the EV Incentive Strategy (EVIS) Program to attract electric vehicle manufacturing investments and position the Philippines within the global EV supply chain.
For Filipino consumers, the order signals a government push to grow local EV production rather than rely solely on imported units, a shift that could eventually affect vehicle availability and pricing in the domestic market. The Department of Trade and Industry’s Board of Investments (BOI) will lead the implementation and report annually to the Office of the President.
EO 121 offers fiscal incentives for manufacturers of hybrid and battery electric passenger cars and commercial vehicles, along with their parts and components. Registered participants may claim Fixed Investment Support covering a share of capital expenditures on tooling, equipment, research and development, and training. To qualify, companies must invest at least ₱5 billion in new EV manufacturing and bring their enrolled models to market within three years of registration.
Manufacturers that hit a minimum production volume of 10,000 units may also receive a Production Volume Incentive worth up to 12 percent of the ex-factory unit price, capped at ₱200,000 per unit. Both incentives run for a maximum of 10 years and are paid out through non-transferable Tax Payment Certificates, which participants can use to offset income tax, excise tax, value-added tax, and import duties.
The order caps total program support at ₱60 billion, with each enrolled EV model eligible for up to ₱15 billion. Applicants may register as many as two models each; if the program is oversubscribed, an Inter-Agency Committee on Electric Vehicle Industry Development will recommend the top four applicants to the BOI based on fiscal and economic impact. The committee, chaired by the BOI, includes the Department of Finance, the Department of Energy, the Department of Transportation, and the Department of Budget and Management, and can recommend forfeiture of incentives for noncompliance.
Mitsubishi Motors Philippines Corporation has already committed to the program. “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,” said Noriaki Hirakata, Chairman of Mitsubishi Motors Philippines Corporation.
Hirakata added: “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.”
EO 121 took effect immediately upon publication. The Department of Budget and Management is expected to propose including EVIS Program funding in the National Expenditure Program for congressional approval under the annual General Appropriations Act.
