The Philippines has abandoned its planned incentives for internal combustion engine (ICE) vehicles, redirecting focus to electric mobility amid rising global fuel supply risks from Middle East tensions.
EVIS Takes Center Stage
Trade Secretary Cristina Roque announced the Department of Trade and Industry (DTI) is replacing the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program with the Electric Vehicle Incentives Strategy (EVIS). EVIS offers manufacturers up to ₱9 billion in support, covering 40% of key investments like tooling and stamping, similar to the now-ended Comprehensive Automotive Resurgence Strategy (CARS). An executive order formalizing EVIS is expected within three months.
EVIS aims for nine million electric vehicles, from two-wheelers to trucks, produced locally between 2028 and 2040, plus 400,000 charging stations. The strategy projects ₱120 billion in investments, 680,000 jobs, and ₱11.4 trillion in economic value.
Automaker Buy-In
Mitsubishi Motors committed to EVIS after CEO Takao Kato met President Ferdinand Marcos Jr., planning hybrid electric vehicle production at its Santa Rosa, Laguna plant by mid-2028. A second unnamed automaker is set to produce four-wheel EVs.
ICE Backup Plan
ICE firms eyeing RACE can still access incentives via the CREATE MORE Act, though electrification remains the priority. This shift positions the Philippines to compete in sustainable transport.
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