PRESIDENT Ferdinand Marcos Jr. has issued an executive order (EO) establishing the Electric Vehicle Incentive Strategy (EVIS) program, which aims to boost domestic EV production via a P60-billion monetary benefit package.
“The EVIS program shall provide time-bound, targeted, performance-based, and transparent fiscal support to encourage strategic investments in domestic EV manufacturing,” Executive Order 121, which was signed on Tuesday, stated.
Presidential Communications Office Undersecretary Claire Castro told reporters that the EO aimed to “create more jobs, attract new investments, strengthen local manufacturing, and reduce the country’s dependence on imported oil.”
Under the EVIS, qualified manufacturers can register up to two EV models to receive tax payment certificates that can be used to cover taxes and duties.
Companies must invest at least P5 billion in new capital, produce at least 10,000 units and “mandatory parts and components” and roll out the models within three years.
Up to four manufacturers will be chosen by an interagency committee to be headed by the Board of Investments.
They will be entitled to fixed investment support for a portion of capital expenditures incurred: 40 percent for the manufacture or assembly of a battery EV and 30 percent for hybrid EV, plug-in hybrids and fuel cell EVs.
For the local manufacture of parts for enrolled models, the fiscal support is also 40 percent for battery EVs and 30 percent for hybrids, plug-in hybrids and fuel cell EVs.
Qualified manufacturers will also be eligible for a production volume incentive of up to 12 percent of the ex-factory price, but not more than P200,000 per unit.
“Through this, we will encourage major companies to set up operations and manufacture electric vehicles and their components right here in the Philippines,” Castro said in Filipino.
“When they invest and manufacture vehicles here, it creates more jobs for Filipinos — ranging from engineers, technicians, factory workers, and logistics personnel to local suppliers,” she added.
Based on latest data from the Chamber of Automotive Manufacturers of the Philippines Inc., EVs accounted for 28 percent of sales in June. Take-up boomed this year — total sales surged by 132.7 percent year on year as of end-June — as fuel prices soared in the wake of the US-Iran war.
Mitsubishi Motors Philippines Corp. (MMPC) welcomed the issuance of EO 121, calling it a major step toward accelerating vehicle electrification, boosting local automotive manufacturing and supporting the industry’s continuous growth.
The company reaffirmed its plan to locally produce hybrid EVs in the country through a P7-billion investment by Mitsubishi Motors Corp.
“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,” MMPC Chairman Noriaki Hirakata said in a statement.
