Government eyes more perks for e-vehicles

MANILA, Philippines — As part of its push to develop the country’s electric vehicle (EV) sector, the government is looking to incentivize the manufacture of four million EV units in the next 10 years, according to an official of the Department of Trade and Industry (DTI).

In a presentation at the Philippine Electric Vehicle Summit (PEVS),” Trade Undersecretary for Innovation and Competitiveness Group Rafaelita Aldaba shared that through an EV incentives scheme, the government is looking to provide incentives to accelerate the shift from the traditional motor vehicle models to EVs.

“Based on our calculations, we are looking at incentivizing four million EVs in the next 10 years, majority of which will be two wheelers and e-trikes along with e-PUVs (public utility vehicles) and e-bus,” Aldaba said.

“And we’re looking at setting the local production targets to be achieved within eight to 10 years from last year, from the promulgation of the EV incentive strategy (EVIS),”Aldaba said, noting that incentives under the scheme will be time bound and performance-based.

Aldaba said the purpose of the incentives scheme is to narrow the cost gap between EVs and the traditional vehicle models adding that this is in line with facilitating and accelerating the shift to EVs.

The trade official shared that an important component of the EVIS is the e-PUV program, which focuses on the manufacture of the commercial vehicle model.

“This is going to be a CARS (Comprehensive Automotive Resurgence Strategy)-like program, the manufacturing of commercial vehicles.This is going to complement the CARS program, but of course it will be dedicated towards jumpstarting the local manufacturing of commercial EVs in the country,” Aldaba said.

Under the program, the country aims to build its automotive manufacturing capacity and capabilities for flagship commercial vehicle model, the e-PUV, that can compete in the global market in the future.

“And this is important to enable us to develop our capabilities in the manufacture of light truck platforms and special purpose vehicles to cater to the domestic and export markets,” Aldaba said.

Meanwhile, Aldaba shared that the incentive scheme will also offer a wider e-PUV plus program, which also extends subsidies to EV users.

“There are two types of support that we’re going to provide. We are directing the support not only on the supply side, but as well as on the demand side,” Aldaba said explaining that the e-PUV plus covers both the manufacturing support program and consumer subsidy program.

Under the consumer subsidy program, the government is looking to provide consumers with direct financial rebates or discounts when they purchase an EV.

Aldaba said they are looking at providing a P10,000 subsidy for buyers of two-wheeler EVs, P20,000 for three-wheeled EVs and P500,000 for e-PUVs.

Moreover, Aldaba explained that for the manufacturing support program, incentives to be given to manufacturers of two-wheeler, three-wheeler EVs, auto electrics, charging stations as well as mining and processing of green metals for EV will be those offered under the CREATE Act.

While the manufacture of passenger EVs such as sedans and SUV may also qualify for CREATE incentives, Aldaba said the gov’t is also looking to transfer the third slot under the CARS program.

In addition, Aldaba said the government is also looking to provide incentives to EV battery manufacturers particularly 50 percent of capital expenditures excluding land, maximum of P3 billion

“So we’re looking at providing support amounting to 50 percent of the capex,” Aldaba said.

Under the Republic Act 11697 or the EV Industry Development Act (EVIDA), the DTI’s attached agency, the Board of Investments, is mandated to come up with an EVIS similar to the CARS program, which shall provide fiscal and non-fiscal incentives to reduce the production cost gap between EVs and traditional vehicles and achieve local EV production targets by 2030.

In an interview with reporters on the sidelines of the PEVS, Aldaba said the the proposed EV incentives strategy will be piloted next year through its partnership project with the United Nations Industrial Development Organization (UNIDO) particularly the “Accelerating the Adoption and Scale Up of electric mobility for low carbon city development in the Philippines.”

“Hopefully, we will be able to prove that it’s going to work and be beneficial for the country,” she said.

The project, which will be implemented until June 2027, aims to reduce greenhouse gas emissions from transport in the country through e-mobility industry development.