EV perks scheme hurdles incentives board

MANILA, Philippines — The Philippines has moved a step closer to rolling out its flagship incentives program for electric vehicle (EV) manufacturers after the proposal secured approval from the Fiscal Incentives Review Board (FIRB).

Finance Secretary Frederick Go, who chairs the interagency board, confirmed to the Inquirer that the Electric Vehicle Incentive Strategy (Evis) secured the FIRB’s nod following a meeting on May 18.

This approval keeps the program — which aims to encourage carmakers to produce EVs locally — on track for a first-half rollout, or before President Ferdinand Marcos. Jr.’s next State of the Nation Address in July.

READ: Sparse charging stations slowing Filipinos’ shift to EV

Evis would require an executive order from Marcos before it could formally take effect. The program will cover manufacturers of both passenger and commercial vehicles, including hybrid and fully electric models.

Because EVs typically carry higher production costs than internal combustion engine vehicles, the program is expected to require a larger incentives budget than its predecessors: the Comprehensive Automotive Resurgence Strategy (Cars) program and the shelved Revitalizing the Automotive Industry for Competitiveness Enhancement (Race) initiative.

Cars was a P27-billion incentive scheme launched in 2015 to support domestic vehicle manufacturing. It drew the participation of two major carmakers: Toyota Motor Philippines Inc. and Mitsubishi Motors Philippines Corp.

Meanwhile, Race was a proposed P9-billion program that would have granted up to P3 billion in fiscal incentives to manufacturers committing to locally produce 100,000 internal combustion engine vehicles.

But the government eventually dropped Race in April to prioritize Evis instead.

PH carmakers interested

Even ahead of its formal rollout, Evis has already attracted interest from several automotive firms, including both local manufacturers and the Philippine units of foreign brands.

So far, only Mitsubishi has publicly confirmed plans to participate. In April, the company announced plans to introduce a locally assembled hybrid EV model by 2028, which could become the country’s first locally manufactured electrified vehicle.

Apart from Mitsubishi, several local automotive firms have also expressed interest in joining the program.

READ: Ayala unit sees EVs hitting 50% of car sales amid oil crisis

Trade Undersecretary Ceferino Rodolfo earlier said there was at least one other manufacturer that had signaled interest in Evis.

The Inquirer also learned that a local carmaker is exploring a possible joint venture with a foreign company to qualify for the program.

Earlier this month, Trade Secretary Cristina Roque said the government was aiming to attract at least four initial participants for the program.

“For the Evis, we are thinking of four companies or hopefully more. But now the list is in four,” Roque said in a May 6 forum in Cebu. “We don’t have the names yet, but of course, Toyota and Mitsubishi are part of the list.”

For the Board of Investments executive director, Ma. Corazon, H. Dichosa, Evis is expected to play a key role in supporting the country’s transition toward electrified transport.

“The main objective is to encourage the local manufacture of electric vehicles, and their parts and components that would likewise support the shift from combustion engine vehicles to EVs,” Dichosa said. “This would also help reduce our dependence on fossil fuels for the transportation sector.” —With a report from Nyah Genelle C. De Leon /atm