The Philippines has expanded its domestic electric vehicle (EV) manufacturing operations with the inauguration of a new manufacturing plant by three-wheeler manufacturer Sazgar Philippines Inc. (SPI) in Binan City, Laguna.

The facility will manufacture electric and internal combustion engine (ICE)-powered three-wheelers and is expected to create employment opportunities and involve local component suppliers.

President Ferdinand Marcos Jr. inspected SPI's manufacturing and assembly facility at the Laguna International Industrial Park on October 29th. During the visit, he called on foreign manufacturers to invest in the Philippines' EV industry and urged the company to increase its use of locally manufactured components.

Established in 2026, SPI is a subsidiary of Pakistan-based Sazgar Engineering Works. The facility is the company's first manufacturing plant outside Pakistan and is 60% Filipino-owned. It has an annual production capacity of 12,000 three-wheeled vehicles powered by either electric systems or internal combustion engines (ICE).

According to Marcos, the plant's initial production mix is expected to comprise 60% electric three-wheelers and 40% ICE-powered models. The proportion of electric vehicles is expected to increase in line with market demand and industry developments. The facility directly employs 3,000 workers and is expected to generate additional employment opportunities across Laguna through the involvement of local suppliers of batteries, glass, seat foam, upholstery, rubber and lubricants.

Marcos said the government expected SPI's vehicles to encourage tricycle operators to switch to electric models, potentially reducing their operating expenses through lower dependence on imported fuel. He noted that an electric three-wheeler capable of travelling between 100 and 210 kilometres on a single charge could cover a full day's trips without consuming petrol, reducing operators' fuel expenditure.

Marcos also urged SPI to reduce its reliance on imported components and increase domestic sourcing. He said the company should raise the proportion of Filipino-made parts used in its vehicles each year. SPI was also considering the possibility of sourcing all components locally within the next year or so. The government, he further added, would work with the manufacturer towards this objective, with the aim of eventually producing vehicles at the plant entirely using locally manufactured parts.

Marcos also called on foreign manufacturers and other industry stakeholders to invest in the Philippines, establish partnerships with local suppliers and consider expanding their manufacturing operations in the country.

Referring to the EV charging sector, he noted that the Department of Energy (DOE) had reported more than 420 accredited electric vehicle charging providers, operators, service providers and suppliers as of August 2026. These entities form part of the country's EV charging infrastructure sector, which serves domestic requirements.

The government is also pursuing measures related to energy security, innovation and investment in emerging technologies. Marcos said these measures, alongside increased domestic EV production, would contribute to the country's target of having electric vehicles account for 50% of its national transport fleet by 2040.

The target is aligned with existing government initiatives, including the Electric Vehicle Industry Development Act (EVIDA) and the Public Utility Vehicle Modernisation Programme (PUVMP). Marcos said the government aimed to expand access to cleaner and modern transport while preparing domestic industries for future requirements.

He further added that the transition to electric mobility was linked to national priorities concerning local manufacturing and reducing dependence on imported fuel.