- EVIS plan includes investment and production-based incentives.
- Aims to accelerate local e-PUV and EV manufacturing.
- Targets 50% EV fleet share by 2045 under EVIDA law.
The Department of Trade and Industry (DTI) has approved a proposed incentive program aimed at revitalizing the electric vehicle (EV) manufacturing sector in the Philippines. Known as the Electric Vehicle Incentives Strategy (EVIS), the program will be submitted to the Fiscal Incentives Review Board (FIRB) for final assessment.
According to a Philstar article, the DTI proposal comprises two key elements: Fixed Investment Support (FIS) and Production Volume Incentives (PVI).
The FIS initiative aims to support initial capital expenses, including tooling, equipment, engineering enhancements, research and development, and training. In the meantime, the PVI aims to incentivize EV manufacturers according to their production levels, utilizing a formula that factors in profit margin for each unit.
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The plan additionally bolsters the manufacturing of electric public utility vehicles (e-PUVs), in line with national objectives to enhance electric mobility across both private and public transportation sectors. The FIRB is anticipated to consider the EVIS during its meeting in July.
DTI officials have mentioned that this approach draws inspiration from the current Comprehensive Automotive Resurgence Strategy (CARS) Program, which had previously offered comparable assistance to traditional vehicle manufacturers.
Upon approval, the EVIS is anticipated to significantly contribute to the government's goal of having electric vehicles make up 50 percent of the national vehicle fleet by 2045. It also meets a requirement of the Electric Vehicle Industry Development Act (EVIDA) of 2022, which mandates the development of policies and incentive frameworks to promote domestic EV manufacturing.