MACTAN, CEBU — Trade Secretary Cristina Roque said the Electric Vehicle Incentive Strategy, a flagship program aimed at boosting local EV manufacturing, is now awaiting approval from Ferdinand Marcos Jr..

The program targets the production of four million locally manufactured electric vehicles — including two-wheelers, e-trikes and e-public utility vehicles — over the next 10 years.

“Once we get approval for that, then it is ready to go. This is to incentivize manufacturers, including Toyota and Mitsubishi, and other companies to set up a manufacturing and assembly plant here in the Philippines for electric vehicles. Both the incentives will be whether hybrid plus electric, or pure electric,” Roque said during a fireside chat at the ASEAN Summit 2026 at the International Media Center.

The Department of Trade and Industry earlier said the program includes fiscal support and will replace the Revitalizing the Automotive Industry for Competitiveness Enhancement program, with a focus on e-public utility vehicles and green metals.

Transport shift gains ground

Roque said public utility vehicle operators are showing strong interest in transitioning to electric vehicles following consultations in Bacolod City.

“And they are really looking forward to shifting from combustion vehicles to electric vehicles, especially with this loan that the Small Business Corporation is rolling out. There is a high demand of wants to shift to EVs. In fact, they have already started to talk to suppliers for the tricycles, jeepneys, and buses. It is very important for us now to provide financial assistance to enable them to shift, as the savings can go from 33 percent to 80 percent,” she said.

“Especially since there is a fuel crisis now, it is very timely to shift,” Roque added.

The DTI, through Small Business Corporation, is offering a P2-billion E-Transport Loan program to help operators and drivers transition to EVs. The program provides up to P1.5 million per unit, or a maximum of P3 million per borrower, with a five-year repayment term, zero percent interest for the first year and a one-year grace period.

Roque said the government is also working with manufacturers to expand charging infrastructure, particularly in areas where transport groups will operate e-jeepneys.

“We provide the loans to the transport groups, but we cannot tell them where to buy the e-vehicle, so it’s up for them to choose. And for sure, the first thing that they will ask is about the charging. But the companies have also assured that they will cooperate by putting up more charging stations. In return, I also assured them that we will take a whole-of-government approach so that it will be easier for them to put up charging stations in the different provinces, in partnership with LGUs. This is ASAP,” she said.

Roque also highlighted the country’s potential in EV manufacturing, citing a young workforce, natural resources for battery production and a growing industrial base.

Industry backing

Also at the event, Toyota Motor Philippines First Vice President for Vehicle Sales Operations Elijah Sue Marcial said the company supports the government’s EV transition.

“For Toyota, we are targeting 30 percent production of electric vehicles by 2030, aligned with the government targets of 50 percent by 2040. While the government and the private sector are building a charging infrastructure, we would like to provide more hybrid vehicles to the market to ease the burden of the increasing fuel price,” she said.

Marcial added that Toyota is also investing in battery recycling and workforce development to address long-term environmental and technical needs.

“But also for Toyota, aside from investing in the future of service technicians, we want to align with the government, which, in the long term, will be many electric vehicles and many used batteries that need to be disposed of properly, and to meet the environmental standards of waste management,” she said.

“So, as early as now, Toyota is also pioneering to support battery recycling facilities. We're working with companies by sending them to trainings in Japan to make sure that we have a proper battery recycling, disposal, and dismantling facility here in the Philippines. We are going to start with the first one in Pampanga. So hopefully there can be more of that in the future,” she added.