The Government of the Philippines is shifting its automotive policy by introducing a PHP60 billion (USD1 billion) Electric Vehicle Incentive Strategy (EVIS), while discontinuing subsidies for internal combustion engine (ICE) vehicle manufacturing.
The move replaces long-running programmes such as the Comprehensive Automotive Resurgence Strategy (CARS) and RACE initiatives, which previously provided up to PHP27 billion in incentives for conventional vehicle production. The new strategy aims to position the Philippines within the global EV supply chain and accelerate electrification of transport.
Under EVIS, the government plans to offer a mix of fiscal and non-fiscal incentives to attract investments in EV assembly, battery manufacturing, parts production, and charging infrastructure. The initiative builds on existing policies such as the Electric Vehicle Industry Development Act, which already provides tax breaks, duty exemptions, and priority registration for EVs.
The policy shift comes amid rising global oil prices and energy security concerns, with the Philippines importing nearly all of its transport fuel. Authorities see EV adoption as a way to reduce dependence on fossil fuels and stabilise long-term energy costs. The initiative signals a decisive transition toward electrified mobility, with the government targeting long-term development of a domestic EV ecosystem spanning manufacturing, infrastructure, and public transport applications.