Philippines EV incentive program

In late July 2026 the Philippines announced a US$1 billion electric‑vehicle incentive scheme (EV Incentive Strategy, EVIS) that would cover up to 40 % of costs for fully electric vehicles and 30 % for hybrids, fuel‑cell and plug‑in models, with eligibility tied to a minimum PHP 5 billion investment and a production quota of 10,000 units. President Ferdinand Marcos Jr. signed Executive Order 121 the same day, formalising the program and earmarking up to PHP 60 billion in fiscal incentives. The order introduced performance‑based mechanisms – Fixed Investment Support and Production Volume Incentives – requiring firms to meet investment thresholds, production targets and to launch up to two locally produced EV models within three years.

Finance Secretary Frederick D. Go hailed the initiative as a step toward a globally competitive EV manufacturing sector, expecting reduced fossil‑fuel imports, quality‑job creation and a regional automotive hub. By early August the government confirmed the time‑bound, performance‑based nature of the support and announced plans to settle roughly PHP 4 billion in outstanding incentives owed to Toyota and Mitsubishi under the earlier Cars program. The Board of Investments is also drafting a new “Race” program with a PHP 9 billion budget for three ICE manufacturers. Mitsubishi Motors Philippines pledged PHP 7 billion to produce the country’s first locally made hybrid EV, while Toyota’s Vios sedan remained the largest beneficiary of the prior Cars incentives.