Philippines Launches New Policy to Boost Local EV Manufacturing

MANILA, Philippines — President Ferdinand Marcos Jr. has issued Executive Order No. 121 on Thursday, July 30, to develop the country's local electric vehicle (EV) manufacturing industry. This move follows Marcos' pronouncement during his fifth State of the Nation Address (SONA) on July 27, where the government aims to make half of the country's vehicles electric-powered by 2040. Under the new policy, an Electric Vehicles Incentives Strategy (EVIS) Program will be established to promote the local manufacturing of EVs, as well as their parts and components, and attract foreign investments to expand the industry. An inter-agency task force composed of representatives from the Board of Investments (BOI), the Department of Finance, the Department of Energy, the Department of Transportation, and the Department of Budget and Management will be formed to evaluate applications and registrations under the program. The measure states that it aims to increase the adoption and use of EVs in the country to reduce dependence on fossil fuels while helping meet greenhouse gas emission reduction targets. Marcos also mentioned this in his SONA, saying that the government has “removed all tariffs on EVs until 2028 to bring down market prices” consistent with the government's clean energy drive. During the SONA, Marcos said increasing EV adoption in the country is also a way to cushion the negative effects of unpredictable oil price hikes brought about by the conflict in West Asia. “Ang mga nag-modernize ng mga sasakyan, lalo na ang mga lumipat sa mga hybrid at electric vehicles, ay hindi nakaramdam ng kurot ng pagtaas ng presyo ng petrolyo,” Marcos said. (Those who modernized their vehicles, especially those who switched to hybrid and electric vehicles, did not feel the rising petrol prices.) In May, the International Energy Agency's 2026 Global EV Outlook report said EVs could account for 45% of car sales in the Philippines by 2035 due to “continued reliance on import duty and excise tax exemptions.”