Philippines' DTI to Open Electric Vehicle Incentive Strategy Program Applications in January
Key Takeaways
- •The DTI will begin accepting EVIS applications from carmakers in January, with program guidelines set for release before the end of this year.
- •Executive Order No. 121 provides P60 billion in total incentives, allocating P15 billion to each of four selected electric vehicle manufacturers.
- •Vingroup, Mitsubishi Motors Philippines Corp., and Francisco Motors Corp. have expressed interest in the program, filling three of its four available slots.
- •The revived RACE program would provide P9 billion in incentives, or P3 billion each, to three internal combustion engine manufacturers.
- •RACE funding remains a request in the DTI's 2027 second-tier budget proposal, and its joint administrative order has not yet been released.
THE Philippines' Department of Trade and Industry (DTI) expects to begin accepting applications early next year from carmakers seeking to register under the Electric Vehicle Incentive Strategy (EVIS) Program.
Trade Undersecretary Ceferino S. Rodolfo told reporters last week that the DTI is set to release the EVIS guidelines within the year, ahead of the January application opening.
“In January, we'll start (opening the program for applications),” he said.
According to Mr. Rodolfo, the government has held inter-agency meetings to finalize the guidelines.
Executive Order No. 121, which established the EVIS, offers P60 billion in incentives for electric vehicle manufacturers to encourage domestic production. The program provides four slots for manufacturers of four EV models, with each carmaker set to receive a P15-billion fiscal package, capping the program's total support at P60 billion.
Three EV makers have expressed interest in enrolling their models in the program: Vingroup, Mitsubishi Motors Philippines Corp., and Francisco Motors Corp. Their expressions of interest account for three of the four slots available under the program.
RACE Program Funding
Separately, Mr. Rodolfo said the requested funding for the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program is included in the DTI's second-tier budget proposal for 2027.
The government has yet to release the joint administrative order (JAO) and implementing guidelines for the program. Mr. Rodolfo noted that signatories to the JAO include the DTI, the departments of Finance and of Budget and Management, and the bureaus of Customs, Internal Revenue, and Treasury.
The government revived the RACE program, reversing an earlier decision, in response to continued market demand for internal combustion engine (ICE)-powered vehicles. RACE seeks to provide P9 billion worth of incentives, or P3 billion each, to three ICE manufacturers. With EVIS covering electric vehicles and RACE internal combustion engines, the two programs run as parallel incentive tracks for the Philippine automotive industry, though RACE's funding remains a request within the DTI's 2027 budget proposal while EVIS support is already established under Executive Order No. 121.
— Beatriz Marie D. Cruz
Source: BusinessWorld
