AmCham backs planned subsidies for EV buyers

MANILA, Philippines — The American Chamber of Commerce of the Philippines has expressed support to the government’s plan of providing subsidies for electric vehicle (EVs) buyers as this would help get air-polluting cars off the streets.

“Most of the time AmCham doesn’t, we will not support subsidies because once you take them away it hurts. And once you give them, it’s hard to take them away. But yeah, that kind of incentive is helpful, that kind of subsidy,” AmCham executive director Ebb Hinchcliffe said.

“Anything we can do to get air-polluting cars off the streets or air-polluting jeepneys off the streets is a plus and those subsidies will help,” he said.

Department of Trade and Industry (DTI) Undersecretary Rafaelita Aldaba earlier said the government is looking to provide subsidies to EV users through the e-public utility vehicle (PUV) plus program.

“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.

She 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 government 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, for a maximum of P3 billion.

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

Aldaba said the government is looking to subsidize the manufacture of four million EV units in the next 10 years.

Under 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.

Hinchliffe expressed support for the government’s plans of providing more incentives to both EV manufacturers and users, noting the need to push for the greater adoption of EVs.

“We really need a push now to get more and I’d love to see manufacturing of the e-vehicles here in the Philippines. We passed the bill (EVIDA). Come on, take advantage of it,” Hinchcliffe said.

Asked how the country can attract more EV manufacturing investments, Hinchcliff emphasized the need for having more EV buyers in the country.

“It’s always a challenge for any kind of investment and foreign investment. You got to have the right investment climate, you got to have the right incentives. We gave them the incentive now then we got to give them the market,” he said.

“Nobody’s going into the market if they don’t have somebody buying their product. So the big thing is to push the market.”

Data from the Electric Vehicle Association of the Philippines showed that EV sales in the first quarter of the year have grown by 15 percent compared to the previous year as it reached 2,536 units.

The group is projecting total registered electric vehicles in the country to reach6.6 million units by 2030.