Is Philippines falling behind in EV race as Southeast Asia revs up?

South China Morning PostCenter-RightEN 1 min read 100% complete by Sam BeltranFebruary 1, 2026 at 06:00 AM

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The Philippines risks falling behind other Southeast Asian nations in electric vehicle manufacturing due to policy uncertainty. Industry leaders are concerned after President Marcos Jr. vetoed ₱92.5 billion in unprogrammed appropriations from the 2026 national budget, which included funding for automotive incentive schemes like CARS and RACE. These programs aimed to encourage local vehicle production by requiring manufacturers to produce a minimum number of vehicles to qualify for incentives. Industry groups warn that the veto could undermine jobs, unsettle investors, and hinder the growth of electric mobility in the Philippines, which relies on a strong automotive supply chain. The concern is that the Philippines may miss out on the regional EV manufacturing boom.

Key Entities & Roles

Key Player Opposition Context

Manila ×260% Ferdinand Marcos Jnr 70% Comprehensive Automotive Resurgence Strategy (CARS) ×370% Revitalising the Automotive Industry for Competitiveness Enhancement (RACE) ×270% Southeast Asia ×280% Philippines ×490%

Keywords

electric vehicles 100% philippines 90% automotive industry 80% local production 70% incentive schemes 70% southeast asia 60% policy uncertainty 60% race program 50% cars program 50% manufacturing 40%