President Ferdinand Marcos Jr. has signed Executive Order No. 121, creating the Electric Vehicle Incentive Strategy (EVIS) to accelerate the development of the country's electric vehicle industry and attract investments in local manufacturing.

Palace Press Officer Undersecretary Claire Castro announced the issuance of the executive order during a Palace briefing on Thursday.

"The President has issued a new executive order to further strengthen the electric vehicle industry in the Philippines. Under Executive Order No. 121, there will be an Electric Vehicle Incentive Strategy program. Through this, we will encourage large companies to build and manufacture electric vehicles and their parts here in the Philippines," Castro said.

She said the program is expected to generate jobs for engineers, technicians, factory workers and logistics providers while encouraging local suppliers to expand their operations.

Castro added that the government will provide incentives, including tax payment certificates, to qualified companies investing in domestic EV manufacturing.

"There will also be strict monitoring and conditions. The goal of the executive order is to create more jobs, attract investments, strengthen local manufacturing, reduce dependence on imported oil and position the Philippines as an important part of the global EV supply chain," she said.

Under EO 121, the EVIS Program provides time-bound, targeted, performance-based and transparent fiscal incentives to encourage strategic investments in the local manufacture of electric vehicles and their components.

The program covers the production of hybrid electric vehicles and battery electric vehicles, including passenger cars, commercial vehicles, parts and components, subject to the qualifications and guidelines under the order.

Existing non-fiscal incentives under current laws and regulations will remain in effect.

Mitsubishi backs program

Mitsubishi Motors Philippines Corp. (MMPC) welcomed the issuance of EO 121, calling it an important step toward accelerating vehicle electrification and strengthening the country's automotive manufacturing sector.

The company said it will participate in the program through Mitsubishi Motors Corp.'s previously announced P7-billion investment to locally produce hybrid electric vehicles in the Philippines.

"MMPC welcomes the issuance of the Electric Vehicle Incentive Strategy Executive Order, which marks an important milestone in advancing vehicle electrification and strengthening the automotive industry in the Philippines," MMPC Chairman Noriaki Hirakata said.

"Backed by Mitsubishi Motors Corporation's P7-billion investment commitment, we are ready to support the government's vision through the local production of hybrid electric vehicles, further enhancing the country's manufacturing capabilities and competitiveness," he added.

Hirakata said the investment will help expand local manufacturing, strengthen the domestic automotive supply chain and support the country's transition toward sustainable transportation.

"Through this investment, we look forward to creating greater value for the Philippine economy, supporting the country's sustainability objectives, generating opportunities across the automotive ecosystem and contributing to the continued growth of local vehicle manufacturing," he said.