PRESIDENT Ferdinand R. Marcos, Jr. said the government is assessing local vehicle manufacturing facilities for upgrades needed to support domestic electric vehicle (EV) production under the Electric Vehicle Incentive Strategy (EVIS).
“We are looking at the facilities, what is already here, what is still lacking and what needs to be supported by DoST (Department of Science and Technology) and the National Government so that we can manufacture electric vehicles here in the Philippines,” Mr. Marcos said in Filipino during a visit to MD Juan Enterprises, Inc. in Caloocan City on Tuesday.
Mr. Marcos inspected the company’s facilities as the government evaluates the requirements for producing locally made electric tricycles and jeepneys. The visit comes weeks after the issuance of Executive Order No. 121, which established EVIS to expand domestic EV assembly through performance-based incentives.
“I believe that we will soon be seeing a Filipino electric vehicle, tricycle and maybe down the road, we can make a jeepney,” he added.
The EVIS program carries a P60-billion fiscal support ceiling and seeks to position the Philippines as a regional EV manufacturing hub through nontransferable tax payment certificates tied to investment and production targets.
Under the program, as many as four manufacturers may participate, with incentives capped at P15 billion per EV model and subject to a minimum capital investment of P5 billion.
Science and Technology Secretary Renato U. Solidum, Jr. said MD Juan Enterprises has already benefited from the agency’s Small Enterprise Technology Upgrading Program 4.0.
“Through the Industry 4.0 program, we are looking at how to automate them,” Mr. Solidum told reporters in Filipino. “We want this to be continuous, and we have expert Balik Scientists who will help in their automation and solve these production bottlenecks.”
The company used a P1.99-million DoST grant to establish powder-coating capabilities, boosting sales by 15% and helping it secure five US-based clients, Mr. Solidum said. Founded in 1967, MD Juan Enterprises manufactures replacement parts for vintage Jeep vehicles.
The DoST plans to provide further support through its Industry 4.0 initiative to accelerate production and improve manufacturing efficiency.
Mr. Solidum said rising energy costs have increased interest in EVs and that the agency plans to link local manufacturers with state universities that have developed EV prototypes, including Cagayan State University and the University of the Philippines.
“What we really lack is engaging an industry partner to accelerate production so that prices will decrease, making it more affordable for our countrymen,” he said.
Mr. Solidum said the DoST is also discussing financing support with Land Bank of the Philippines for enterprises vetted by the agency.
“If we manufacture the electric vehicle here, after-sales service will be fast because the manufacturer is already here,” he said, adding that local production could create jobs in manufacturing and sales.
Mr. Marcos said technical consultants are identifying additional machinery needed to support EV production.
“The next step is to put in some of the equipment that is still necessary for the production of the electric vehicle,” he said.
He said local EV manufacturing forms part of a broader effort to reduce dependence on imported petroleum and help shield the economy from swings in global fuel prices. — Erika Mae P. Sinaking