Philippines launches €850m incentive programme for EV manufacturing
The Philippines has introduced a new incentive programme worth up to 60 billion pesos (about €852 million) to attract electric vehicle manufacturing. The scheme offers investment and production incentives for locally built electric passenger and commercial vehicles and their components.
The executive order, signed by Philippine President Ferdinand Marcos Jr., formally establishes the Electric Vehicle Incentive Strategy (EVIS) programme to support domestic electric vehicle manufacturing. It covers the local manufacture of battery-electric vehicles, hybrid electric vehicles, plug-in hybrids and fuel cell electric vehicles, including passenger cars, commercial vehicles and their parts and components.
According to the executive order, the EVIS programme is intended to ‘promote local manufacturing of EVs, including their parts and components, attract investments to expand domestic EV manufacturing operations, and develop the Philippines as a regional automotive manufacturing hub.’ It also aims to increase EV adoption, reduce the country’s dependence on fossil fuels and support its greenhouse gas reduction commitments.
Support per manufacturer is capped at 15 billion pesos. Carmakers can apply to register up to two vehicle models.
If there are more applications than funding, the government will select up to four manufacturers based on criteria including investment size, production plans, economic impact, job creation and compliance with national and international vehicle standards. Applicants must also present an after-sales support plan, including battery disposal or recycling and spare parts availability for at least ten years.
To qualify for investment support, companies must commit at least five billion pesos in new investments and launch production of the registered model within three years. Production incentives require manufacturers to build complete vehicles, manufacture mandatory parts and components locally, and commit to a minimum production capacity of 10,000 vehicles.
The programme provides two forms of fiscal support. Fixed Investment Support (FIS) reimburses up to 40 per cent of eligible capital expenditure for BEVs and their components, while HEVs, PHEVs and FCEVs qualify for up to 30 per cent. Eligible costs include tooling, manufacturing equipment, research and development, engineering changes, start-up expenses and workforce training, but exclude land acquisition.
In addition, manufacturers can receive a Production Volume Incentive (PVI) worth up to 12 per cent of the ex-factory vehicle price, capped at 200,000 pesos per vehicle. Both incentives are available for up to ten years.
Rather than direct cash payments, incentives will be issued as non-transferable Tax Payment Certificates that can be used to offset income tax, excise tax, value-added tax and import duties. The executive order also states that the programme will provide ‘time-bound, targeted, performance-based, transparent fiscal support to encourage strategic investments in domestic manufacturing.’
The Philippines’ Board of Investments will oversee implementation through a newly established inter-agency committee responsible for evaluating applications, monitoring compliance and administering the programme.
officialgazette.gov.ph (executive order; PDF), nikkei.com