Gov’t eyes P60-B perks for EV makers

MANILA, Philippines – Two new incentive packages for carmakers planning to manufacture vehicles in the Philippines are being firmed up, with electric vehicle (EV) producers poised to receive substantially bigger government support than their internal combustion engine (ICE) counterparts.

According to Trade Undersecretary Ceferino Rodolfo, the proposed Electric Vehicle Incentive Strategy (Evis) carries a P60-billion budget for up to four manufacturers, each eligible for incentives of P15 billion.

READ: DTI in talks with 2 carmakers for Evis perks

By comparison, the revived Revitalizing the Automotive Industry for Competitiveness Enhancement (Race) program is being designed with a P9-billion budget for three ICE manufacturers, or P3 billion each over a three-year period.

If approved in its current form, Evis would become the country’s largest incentive package for vehicle manufacturing, surpassing the P27-billion Comprehensive Automotive Resurgence Strategy (Cars) program launched in 2015 to support local ICE production.

Recall that the Department of Trade and Industry (DTI) shelved the initial version of Race in April to prioritize Evis, which is now awaiting President Marcos’ approval after securing clearance from the Fiscal Incentives Review Board in May.

Currently, the Board of Investments (BOI) is drafting the implementing rules for Evis before opening a three-month application period.

Work on Race is also underway, with Rodolfo saying the program is targeted for rollout within the year and will largely retain the framework of its previous version.

Who’s joining?

Asked whether EV manufacturers should receive greater incentives than traditional automakers, Finance Secretary Frederick Go, who also serves as the country’s investment czar, said the government’s investment priorities justify that distinction.

“I think there should be a premium on new technology. If you read the SIPP (Strategic Investment Priority Plan), in our tiering, the highest tier is the new frontier,” Go said, referring to the 2026-2028 SIPP.

READ: DTI drops Race program, shifts focus to EVs

So far, only Mitsubishi Motors Philippines Corp. has publicly confirmed plans to participate in Evis. In April, the country’s second-largest automotive brand announced plans to introduce a locally assembled hybrid EV by 2028, potentially making it the Philippines’ first locally manufactured EV.

According to BOI executive director Ma. Corazon Dichosa, two local vehicle manufacturers are also in talks with the agency and are planning to partner with foreign manufacturers to qualify for the program.

Rodolfo said Evis will be open only to manufacturers of four-wheeled EVs.

Interest in reviving Race, meanwhile, has largely been driven by Toyota Motor Philippines Corp., which has argued that ICE manufacturers should continue receiving government support while conventional vehicles still dominate the domestic market. INQ