EVs in PH: Government Incentives Explained

Electric vehicle sales in the Philippines jumped 66.9 percent to 5,701 units as of end-February compared to the same period last year, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association. That growth is happening alongside a major shift in government policy — a planned P60-billion incentive package aimed at manufacturers, not just buyers. Understanding what these incentives actually cover, who they benefit, and where the gaps remain is the difference between making an informed decision and getting caught in the hype.

The government is betting that incentivizing production will eventually lower prices and expand choices for Filipino consumers. But the details of the Electric Vehicle Incentive Strategy (EVIS) are still being finalized, and the existing perks under the EVIDA law are already in effect. The picture is more layered than a single headline suggests.

What the EVIDA Law Already Provides

The Electric Vehicle Industry Development Act (EVIDA), or Republic Act No. 11697, lapsed into law on April 15, 2022. It established the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) as the national development plan. The incentives under EVIDA — excise exemptions, tariff breaks, registration discounts, and coding exemptions — run for eight years from the law’s effectivity. That means the clock is ticking, and these perks won’t last forever.

The P60-Billion EVIS: What Changes and What Doesn’t

The EV Incentive Strategy (EVIS) is a separate, larger initiative. At P60 billion, it dwarfs the P27 billion allocated under the Comprehensive Automotive Resurgence Strategy (CARS) program, which it effectively replaces. Trade Secretary Ma. Cristina A. Roque confirmed that the government is dropping the Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program to focus entirely on EV incentives. President Ferdinand R. Marcos, Jr. vetoed P4.32 billion for CARS and P250 million for RACE in the 2026 national budget, signaling a clear pivot.

EVIS targets four-wheeled EV manufacturers — battery electric, hybrid, and plug-in hybrid — with four participants each receiving up to P15 billion in fiscal support. Unlike the CARS program, which required firms to produce at least 200,000 units within six years, EVIS has no production volume target. That is a significant difference: the government is betting on manufacturing presence rather than guaranteed output. Trade Undersecretary Ceferino S. Rodolfo stated that the government is focusing on incentivizing EV makers amid growing demand, leveraging the Philippines’ existing ecosystem of parts manufacturers and assembly workers.

The executive order for EVIS is expected before President Marcos’ State of the Nation Address in July. The Board of Investments (BOI) is finalizing details with the Fiscal Incentives Review Board (FIRB), which includes the Department of Finance, Department of Trade and Industry, Department of Budget and Management, and the Office of the President. Finance Secretary Frederick Go confirmed the plan was presented to the President and is nearing release.

Fine Print That Catches People Off Guard

The Eight-Year Sunset Clause

Every incentive under EVIDA — the excise exemption, MVUC discount, registration perks, and importation benefits — is valid for only eight years from the law’s 2022 effectivity. That means by 2030, these advantages could expire unless Congress extends them. Anyone planning a long-term EV purchase should factor in the possibility that renewal fees and taxes could rise significantly after that window closes.

Hybrids Get Less Than Full EVs

Hybrid electric vehicles receive a 50% excise-tax exemption, not the full 100% that battery electric vehicles enjoy. The MVUC discount is also halved: 15% for hybrids versus 30% for BEVs. This creates a real cost difference over the vehicle’s lifetime. A buyer choosing a hybrid for convenience may end up paying more in taxes and fees than someone who goes fully electric.

The 5% Fleet Mandate Is Phased, Not Immediate

Industrial and commercial entities, public-transport operators, LGUs, national government agencies, and GOCCs are required to have 5% of their fleets as EVs. But this is a phased mandate under CREVI, not an overnight switch. The timeline and enforcement mechanisms are still being developed, which means compliance may be uneven across sectors. For businesses considering fleet conversion, the actual deadline and penalties remain unclear.

Zero Tariff Is Temporary and Conditional

The zero MFN import tariff on BEVs, implemented in February 2023 under Executive Order No. 12, was extended to 2028 by the NEDA Board. But the extension also expanded coverage to include electric tricycles, quadricycles, hybrid and plug-in hybrid jeepneys and buses, and completely-knocked-down (CKD) EV units. That means the tariff break is broader than before, but it is still a temporary measure. Importers and buyers cannot assume these rates will hold beyond 2028.

What This Means for Different Buyers

For Individual Car Buyers

The most immediate benefit is the excise-tax exemption. A fully electric vehicle that would normally carry a significant excise tax burden is now 100% exempt, which can lower the purchase price by hundreds of thousands of pesos depending on the model. The number coding exemption is a practical daily advantage, especially in Metro Manila and other cities where the UVVRP is enforced. The 30% discount on MVUC and registration fees adds up over time, though it is modest compared to the upfront savings. The key decision point is whether the available EV models in your price range meet your daily driving needs, given the current state of charging infrastructure.

For Businesses and Fleet Operators

The 5% EV fleet mandate means that companies with vehicle fleets need to start planning for compliance now. The phased implementation gives some breathing room, but the requirement is law. Businesses should evaluate which vehicle types — electric tricycles, e-jeepneys, or electric cars — fit their operations best. The expanded zero-tariff coverage to 2028 makes importing CKD units more attractive for local assembly, which could be a viable path for companies that want to build their own EV fleet rather than buy finished units.

For OFWs and Overseas Investors

For Filipinos working abroad who plan to return and invest in an EV, the current incentives make importation more attractive. The zero MFN tariff on CKD units means that bringing in a vehicle in parts for local assembly carries no import duty. However, the process of registering an imported EV and securing the green license plate series (rightmost letter V to Z, middle letter A to M) requires coordination with the LTO. The priority registration and renewal perk is designed to make this smoother, but the actual experience may vary by LTO office.

Frequently Asked Questions

What to Watch For Next

The EVIS executive order is expected before the President’s State of the Nation Address in July. That document will clarify exactly how the P60 billion will be distributed, which manufacturers qualify, and whether any consumer-level price benefits are built into the program. Meanwhile, the existing EVIDA incentives are already in effect and worth using now — especially the excise exemption and coding exemption, which have no reason to wait. The real question is whether the manufacturing push will translate into more affordable models for the average Filipino, or whether the benefits will remain concentrated at the higher end of the market. Keep an eye on which manufacturers announce local assembly plans, and compare the final EVIS terms against the CARS program’s production targets to gauge whether the government’s bet pays off.

If this was useful, you might also want to read our deeper analysis on whether these incentives are enough for Filipino drivers.

Sources

EVs vs. Gas: Which Is More Reliable in the Philippines? — A practical comparison of ownership costs, maintenance, and real-world reliability for Filipino drivers.

Electric Vehicle Range: Does It Shrink in Philippine Heat and Traffic? — Examines how local conditions affect EV battery performance and what that means for daily use.

Govt eyes P60 billion EV incentives. BusinessWorld, April 2026.

Government nears rollout of EV incentive plan. Philstar Global, May 2026.

EV Incentives Philippines: EVIDA Act Guide. ChargeEV Calculator, 2025.