Key facts
- The Philippines has launched a $1 billion Electric Vehicle Incentive Strategy (EVIS).
- EVIS replaces previous subsidy programs for internal combustion engine (ICE) vehicle manufacturing.
- The strategy aims to attract investments in EV assembly, battery manufacturing, parts production, and charging infrastructure.
- The Philippines imports nearly all its transport fuel, making EV adoption attractive for energy security.
- The government is targeting the development of a domestic EV ecosystem, including e-public transport.
The Philippines has launched a $1 billion Electric Vehicle Incentive Strategy (EVIS) to bolster its domestic automotive sector and attract foreign investment, joining Southeast Asia's growing electric vehicle market. This initiative replaces previous government support programs for internal combustion engine (ICE) vehicle manufacturing, such as the Comprehensive Automotive Resurgence Strategy (CARS) and RACE Programmes, which provided up to ₱27 billion in incentives.
EVIS aims to attract EV assemblers, battery manufacturers, and parts suppliers by offering a package of fiscal and non-fiscal incentives. This strategy complements the existing Electric Vehicle Industry Development Act, which already provides tax breaks, import duty exemptions, and priority registration for EVs. The policy pivot is a response to global industry trends and the country's desire to integrate into the EV supply chain, especially given the Philippines' near-total reliance on imported fuel for transportation.
Industry groups report that several Asian and European EV brands have initiated exploratory talks with the Philippines. The country's shift towards electrified mobility is also influenced by rising global oil prices and energy security concerns. The government is targeting the development of a comprehensive domestic EV ecosystem, encompassing manufacturing, charging infrastructure, and public transport applications, with a long-term vision for electrification by 2028-2040.