Marcos Signs EO 121 to Accelerate EV Manufacturing, Lower Electric Vehicle Prices

Business | Manufacturing Posted on 2026-08-02 04:26:33

MANILA – The Philippine government is stepping up efforts to establish the country as a regional hub for electric vehicle (EV) manufacturing following President Ferdinand R. Marcos Jr.'s signing of Executive Order (EO) No. 121, creating the Electric Vehicle Incentive Strategy (EVIS) Program.

The new policy is expected to attract investments in local EV manufacturing while making electric vehicles more affordable for Filipino consumers through fiscal incentives and industry support.

According to the Department of Energy (DOE), estimates indicate that the EVIS Program could reduce the retail prices of electric vehicles by 6 to 12 percent, translating to potential savings of up to PHP200,000 per vehicle, depending on the model.

DOE Secretary Sharon Garin said the program is designed to strengthen domestic manufacturing, lower production and logistics costs, expand consumer choices, and enhance market competition.

"President Ferdinand R. Marcos Jr. has made it clear that the Philippines should not only use electric vehicles—we should build them. Executive Order No. 121 transforms that vision into concrete action by encouraging investments in local manufacturing, creating quality employment opportunities, and making electric vehicles more affordable and accessible to Filipino families," Garin said in a statement.

She added that expanding the country's EV industry will also contribute to greater energy security by reducing dependence on imported petroleum products.

"Transportation remains one of the country's largest consumers of imported fuel. Every electric vehicle powered increasingly by Philippine-generated electricity helps reduce our reliance on imported oil, shields consumers from volatile global fuel prices, strengthens our energy resilience, and supports a cleaner and more sustainable transportation system," Garin said.

The DOE noted that EO No. 121 reinforces the government's transition toward cleaner transportation and increased utilization of renewable energy.

The executive order also establishes the Inter-Agency Committee on Electric Vehicle Industry Development, which will coordinate the implementation of EV policies among the Department of Energy, Department of Trade and Industry (DTI), Board of Investments (BOI), Department of Finance (DOF), Department of Transportation (DOTr), Department of Budget and Management (DBM), other government agencies, and private sector stakeholders.

Strengthening Local Manufacturing

Trade and Industry Secretary Ma. Cristina Roque described EO No. 121 as a milestone in advancing the Philippines' industrial development and positioning the country as an emerging electric vehicle manufacturing hub in Southeast Asia.

She said the EVIS Program goes beyond expanding EV adoption by building a competitive local manufacturing ecosystem capable of generating quality jobs, attracting advanced technologies, increasing investments, and integrating Philippine industries into regional and global supply chains.

"We express our sincere gratitude to President Marcos for his strong leadership and unwavering commitment to industrial transformation, sustainable mobility, and green economic growth. The issuance of Executive Order No. 121 sends a clear message to both global and domestic investors that the Philippines is ready to compete for high-value manufacturing investments in the rapidly growing electric vehicle industry," Roque said.

She added that strengthening domestic EV production will help lay the foundation for a greener, more resilient, and globally competitive Philippine economy.

The EVIS Program forms part of the government's broader strategy to accelerate industrial modernization, support clean energy initiatives, generate employment, and position the Philippines as a competitive player in the global electric mobility sector.

NPO News Team I PNA-PR

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