Philippines unveils $1 bn EV subsidy to become Southeast Asian auto manufacturing hub

The Philippines announced a US$1 billion incentive programme, called the EV Incentive Strategy (EVIS), that will cover up to 40% of costs for fully electric vehicles and 30% for hybrids, fuel‑cell and plug‑in models. To qualify, manufacturers must invest at least 5 billion pesos (about US$81 million) and produce a minimum of 10 000 units. The scheme offers tax credits and caps support at 15 billion pesos per vehicle line, aiming to attract foreign investment and position the country as a regional automotive centre.

The policy comes amid broader ASEAN discussions on the impact of China’s growing manufacturing capacity. Recent ASEAN foreign‑minister meetings in Manila highlighted both opportunities and tensions as Chinese trade and investment intensify, prompting Southeast Asian nations to seek stronger domestic industries. The Philippines’ move seeks to capture a share of the fast‑growing electric‑vehicle market while diversifying from traditional low‑value manufacturing.

The initiative targets both domestic car makers and global EV producers, signalling a strategic shift for the Philippines within the competitive landscape that includes established hubs such as Thailand and Indonesia.