Philippines Accelerates EV Shift with New Incentives and Financing
The Philippines is accelerating its shift toward electric vehicles (EVs) as rising global oil prices, supply uncertainties in the Middle East, and regional competition within Southeast Asia push the government and automakers to fast-track investments in cleaner transport technologies.
During an Asean Business Exchange panel on Wednesday, May 6, 2026, Trade Secretary Cristina Roque said the Marcos administration is preparing a new Electric Vehicle Incentive Strategy (EVIS) designed to attract global manufacturers to establish EV and hybrid assembly operations in the country.
“We are encouraging manufacturers of electric vehicles to invest in the Philippines,” Roque said, adding that the government hopes to initially attract at least four companies into the local EV ecosystem. The incentives program, now awaiting approval from the Office of the President, will cover both hybrid and fully electric vehicles.
The push comes as geopolitical tensions and volatile fuel prices intensify the urgency of reducing dependence on imported oil. Roque admitted the transition toward EVs has been “expedited” by the current crisis.
Financing Support
The Department of Trade and Industry (DTI) is also rolling out financing support for transport operators shifting away from traditional combustion engines. Through SB Corp., the government launched an “E-Transport Loan” program aimed at helping small transport operators, jeepney drivers, tricycle operators, and bus companies purchase electric vehicles.
Roque said transport groups in Negros have already begun discussions with EV suppliers after learning about the program, which offers a one-year grace period on principal and interest payments and a 6.7 percent annual interest rate. She said operators could save between 33 percent and 80 percent on operating costs by switching to EVs.
“There is a high demand actually for shifting to EVs,” Roque said. “The problem before was financing.”
Automaker Support and Hybrid Focus
Japanese automakers operating in the Philippines signaled support for the government’s direction, although both emphasized that hybrids — not fully battery-powered EVs — would likely dominate the local market in the near term because of infrastructure constraints.
Mitsubishi Motors Philippines Corp. president Ritsu Imaeda said the company recently decided to expand hybrid production in the Philippines after seeing stronger government support and long-term market potential. He said the Philippines was previously not considered among the company’s top priority markets, but growing demand and manufacturing incentives encouraged the firm to invest in hybrid assembly operations.
Toyota Motor Philippines, meanwhile, said electrified vehicles could account for as much as 20 percent to 30 percent of the domestic auto market by the end of the year, up from around 12 percent currently. Toyota Motor Philippines first vice president Elijah Sue Marcial said Toyota continues to pursue a “multi-pathway” strategy involving hybrids, battery EVs, and internal combustion engine vehicles to address varying consumer needs and infrastructure limitations. The company earlier invested P5.5 billion to support production of the Tamaraw in Santa Rosa, Laguna, benefiting from the government’s Comprehensive Automotive Resurgence Strategy program.
Lack of Charging Stations
Both Toyota and Mitsubishi stressed that the country’s biggest challenge remains the lack of charging infrastructure. “Range anxiety is very real,” Marcial said, noting that consumers remain concerned about where to charge vehicles and how long charging would take, particularly in traffic-heavy urban areas.
Roque acknowledged the concern, saying the government is working to simplify approvals for charging stations and encourage companies to expand charging networks nationwide. Without charging infrastructure, she said, EV adoption would remain difficult, particularly for transport operators whose income depends on vehicle uptime.
Battery Recycling and Workforce Training
Beyond vehicle production, automakers also highlighted the growing importance of workforce training and battery recycling. Toyota said it has incorporated EV diagnostics and servicing into its technical school curriculum to prepare Filipino technicians for the transition to electrified mobility. The company is also working on battery recycling and dismantling facilities in the Philippines as part of long-term sustainability efforts.
Roque said attracting EV investments would generate benefits beyond manufacturing, including jobs for suppliers, logistics firms, retailers, restaurants, and surrounding communities. “We don’t just see the benefits of the manufacturing plant itself, but the whole ecosystem around it,” she said.
