The Philippine Economic Zone Authority (PEZA) announced that four electric vehicle manufacturers were considering the Philippines as a manufacturing base. These include two Chinese electric vehicle manufacturers, one American maker of e-buses, e-heavy equipment, and electric vehicles, and one manufacturer from Indonesia.
Envirotech Vehicles (EVT), an American company, is now doing due diligence but had already scouted places accompanied by PEZA officials. The company plans to develop a USD 80 million plant in Clark Freeport Zone, north of Metro Manila, with a total land area of 15,000-20,000 square meters. From there, it intends to export 200 electric buses to Singapore. This will be the company’s first factory in Southeast Asia.
A Chinese e-motorbike manufacturer is looking to apply for registration with PEZA in January 2024 for its assembly plant. The Indonesian manufacturer is also expected to register within the year. EV manufacturers are looking at areas in the provinces located just a few kilometers outside of Metro Manila, such as Bulacan and Pampanga in the north and Cavite, Laguna, Batangas, Rizal, and Quezon in the south.
Registration with PEZA entitles investors to fiscal and non-fiscal incentives provided for in the Electric Vehicle Industry Development Act (EVIDA) which was passed into law in April 2022. Companies will also benefit from the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act for performance-based tax incentives. In order to reach its prior high levels of investment, PEZA aims to secure investments totaling PHP 250 billion (USD 4.47 billion) by 2024.
Source: Philippine Star, Manila Standard