The Electric Vehicle Association of the Philippines (EVAP) has voiced concern over the delay in implementing the Electric Vehicle Incentive Strategy (EVIS), a program designed to bolster local electric vehicle (EV) manufacturing and attract foreign investment.
EVAP president Edmund Araga said during the 13th Philippine Electric Vehicle Summit on Oct. 23 that investors were awaiting clearer policies under EVIS before committing to building plants in the country.
“This is what EV investors are waiting for before setting up operations here,” Araga said, noting that potential investors from China and other countries are ready to invest once the incentive system is finalized.
The EVIS, a key component of the Electric Vehicle Industry Development Act (EVIDA) passed in April 2022, aims to narrow the cost gap between EVs and traditional vehicles through fiscal and non-fiscal incentives.
The proposed incentives include fixed support of up to 50 percent of capital expenditures—covering manufacturing, start-up and training costs—and production volume incentives of up to 30 percent, depending on the vehicle type. These will be available until 2035 or until production targets are met.
Department of Trade and Industry Secretary Ma. Cristina Roque earlier said the agency had approved the EVIS framework, pending review by the Fiscal Incentives Review Board and final approval by Malacañang.
Araga said some issues needed to be resolved, including budget allocation, noting reports that the DTI and the Board of Investments lack budget support for the EVIS.
The strategy targets the production of 6.3 million EVs and the installation of 147,000 charging stations by 2040.
EVAP estimates that full implementation could generate P11.4 trillion in economic output and create 700,000 local jobs in assembly, battery production, and charging infrastructure.
Araga called for stronger inter-agency coordination to expedite the release of the executive order implementing the EVIS, citing the surge in EV registrations to 29,715 units from January to July this year.
“We call for continued support so we can sustain our milestones and make mobility in the Philippines more efficient, environmentally friendly, and globally competitive,” he said.
