Philippines to launch new automotive incentive programs

The Philippine government is preparing to roll out new automotive incentive schemes, specifically the Electric Vehicle Incentives Strategy (EVIS) and the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) programs. Trade and Industry Secretary Cristina Roque stated that the Department of Trade and Industry (DTI) aims to settle approximately P4 billion in unpaid tax certificates owed to manufacturers under the previous Comprehensive Automotive Resurgence Strategy (CARS) program before launching the new initiatives.

To fund these outstanding obligations to companies like Toyota Motor Philippines Corp. and Mitsubishi Motors Philippines Corp., the government intends to utilize P4.081 billion in savings from the Department of Public Works and Highways’ 2025 budget.

The EVIS program, established under Executive Order No. 121, features a PHP60-billion fiscal support package designed for four manufacturers. To qualify, companies must invest at least PHP5 billion and produce 10,000 electric vehicle units annually over a 10-year period. Mitsubishi Motors Philippines Corp. and Francisco Motors Corp. have already expressed interest in the program. The DTI expects to finalize the EVIS framework within one to two months.