PBBM Signs EO 121: PHP 60 Billion incentive package to support local EV manufacturing

President Ferdinand R. Marcos Jr. has signed Executive Order No. 121, establishing the Electric Vehicle Incentive Strategy (EVIS) Program.

A white electric vehicle is being charged at the Corinthian Carpark

What is Executive Order 121?

The landmark PHP 60-billion government plan aims to transform the Philippines from an importer of electric vehicles into a major manufacturing hub for clean transportation in Southeast Asia.

By lowering production costs and encouraging international automakers to build assembly plants locally, official projects could drop electric vehicle (EV) prices by 6 percent to 12 percent for Filipino consumers. This is reportedly equivalent to up to PHP 200,000 in savings per vehicle.

Executive Order No. 121

EO 121 lays out a clear roadmap to attract high-value foreign investments and expand domestic manufacturing for hybrid and fully electric passenger cars, commercial vehicles, and specialized vehicle parts.

The program is led by the Board of Investments (BOI) in collaboration with a dedicated inter-agency committee comprising officials from energy, transport, finance, and budget.

Key Requirements for Automakers

• Minimum Investment - Companies must commit at least PHP 5 Billion in new local capital
• Model Limits - Each participant can register up to two EV models or component manufacturing lines
• Strict Timeline - Manufacturers must launch their locally assembled vehicles or parts into the market within three years of registration
• Program Cap - The Program accommodates a total fund cap of PHP 60 billion, with a maximum limit of PHP 15 billion per enrolled vehicle model.

Its main objectives are to lower EV prices locally, to protect Filipino consumers from oil shocks, to develop high-value technical jobs, to expand local parts suppliers, and to strengthen regional competitiveness.

How the Incentives Work

Rather than giving out direct cash payments, the government will grant Tax Payment Certificates (TPCs). Manufacturers can use these certificates to cover their internal revenue taxes and import duties once they meet their targets.

Incentives are delivered in two ways:

1. Facility Investment Support:  Funding assistance covering up to 40 percent of capital expenses to help companies build or upgrade local facilities and battery assembly lines.
2. Production Milestone Rewards: Performance-based tax credits are issued as companies hit specific production numbers and assembly targets.

What do you guys think?

Source: Presidential Communications Office