President Ferdinand R. Marcos, Jr. said the government is evaluating local vehicle manufacturing facilities to determine what upgrades are needed to support domestic electric vehicle (EV) production under the Electric Vehicle Incentive Strategy (EVIS).

"We are looking at the facilities, what is already here, what is still lacking and what needs to be supported by DoST (Department of Science and Technology) and the National Government so that we can manufacture electric vehicles here in the Philippines," Mr. Marcos said in Filipino during a visit to MD Juan Enterprises, Inc. in Caloocan City on Tuesday.

The President inspected the company's facilities as the government assesses the requirements for producing locally made electric tricycles and jeepneys. Both vehicle types are staples of Philippine public transport, and the government's Public Utility Vehicle Modernization Program has for years pushed operators to retire aging jeepneys in favor of newer, more efficient units. The visit comes weeks after the issuance of Executive Order No. 121, which established EVIS to expand domestic EV assembly through performance-based incentives.

"I believe that we will soon be seeing a Filipino electric vehicle, tricycle and maybe down the road, we can make a jeepney," he added.

The EVIS program carries a P60-billion fiscal support ceiling and seeks to position the Philippines as a regional EV manufacturing hub through nontransferable tax payment certificates tied to investment and production targets. Under the program, as many as four manufacturers may participate, with incentives capped at P15 billion per EV model and subject to a minimum capital investment of P5 billion. The strategy builds on the Electric Vehicle Industry Development Act of 2022 (Republic Act No. 11697), which set national EV adoption targets and a charging infrastructure roadmap, and it follows regional neighbors such as Thailand and Indonesia, which have rolled out their own incentive packages tied to local EV production.

Science and Technology Secretary Renato U. Solidum, Jr. said MD Juan Enterprises has already benefited from the agency's Small Enterprise Technology Upgrading Program 4.0.

"Through the Industry 4.0 program, we are looking at how to automate them," Mr. Solidum told reporters in Filipino. "We want this to be continuous, and we have expert Balik Scientists who will help in their automation and solve these production bottlenecks."

Founded in 1967, MD Juan Enterprises manufactures replacement parts for vintage Jeep vehicles. The company used a P1.99-million DoST grant to establish powder-coating capabilities, an upgrade that boosted sales by 15% and helped it secure five US-based clients, Mr. Solidum said.

The DoST plans further support through its Industry 4.0 initiative to accelerate production and improve manufacturing efficiency. Mr. Solidum said rising energy costs have increased interest in EVs, and the agency intends to link local manufacturers with state universities that have developed EV prototypes, including Cagayan State University and the University of the Philippines.

"What we really lack is engaging an industry partner to accelerate production so that prices will decrease, making it more affordable for our countrymen," he said.

The DoST is also discussing financing support with Land Bank of the Philippines for enterprises vetted by the agency.

"If we manufacture the electric vehicle here, after-sales service will be fast because the manufacturer is already here," Mr. Solidum said, adding that local production could create jobs in manufacturing and sales.

Mr. Marcos said technical consultants are identifying the additional machinery needed to support EV production.

"The next step is to put in some of the equipment that is still necessary for the production of the electric vehicle," he said.

He described local EV manufacturing as part of a broader effort to reduce dependence on imported petroleum and help shield the economy from swings in global fuel prices. — Erika Mae P. Sinaking