Government ramps up drive to attract EV makers

MANILA, Philippines — The Philippines is wooing makers of electric vehicles from China, citing the passage of a law which moves for more government support for the industry.

The Department of Trade and Industry (DTI) through its office in China recently participated in the 2022 International Summit on Lithium Battery Technology and Application for Light Electric Vehicles (BLEV202) in Guangzhou to lure potential investors into the country.

Glenn Peñaranda, Foreign Trade Service Corps (FTSC) assistant secretary at DTI, said the Philippine market is seen growing even bigger with the faster adaptation of electric vehicles after the passage of Republic Act 11697 otherwise known as the Electric Vehicle Industry Development Act (EVIDA) in May 2022.

“With EVIDA’s passage, (the Philippines) will be crafting a Comprehensive Roadmap for the Electric Vehicle Industry, which will be a national development plan for the electric vehicle industry to accelerate the development, commercialization, and utilization of electric vehicles and the Electric Vehicle Incentive Strategy,” Peñaranda said.

The law provides for a national policy framework to develop the electric vehicle industry in the Philippines, particularly for the shift to electric vehicles and for further attracting investments and creating high-value jobs.

EVIDA seeks to promote innovation in clean energy and sustainable transportation, while pushing for the development of a sunrise industry in the country and generating jobs.

The DTI’s attached agency, the Board of Investments, is tasked to come up with the Electric Vehicle Incentive Strategy similar to the Comprehensive Automotive Resurgence Strategy program, which shall provide fiscal and non-fiscal incentives to reduce the production cost gap between electric vehicles and traditional vehicles and achieve local production targets by 2030.

Former trade secretary Ramon Lopez said the EVIDA also expects to lessen the consumption of oil products in transport, and reduce air and noise pollution in urban areas.

EVIDA is among the legislative measures pushed by the DTI under the 18th Congress to help accelerate recovery and make the country more competitive.

Apart from the EVIDA, Philippine Trade and Investment Center in Guangzhou’s (PTIC-Guangzhou) Vice Consul for Commercial Froilan Emil Pamintuan explained some public utility vehicle modernization programs already in place in the Philippines, as well as the incentives already awaiting investors in green ecosystems under Tier II of the Strategic Investment Priority Plan (SIPP).

Currently, incentives are already in place under the SIPP for activities that include assembly of electric vehicles, manufacture of parts & components, establishment and operation of electric vehicle infrastructure such as charging stations; renewable energy; energy efficiency and conservation projects; energy storage and integrated waste management, disposal and recycling.