MANILA, Philippines — A proposed government incentives aimed at developing the country’s electric vehicle (EV) sector are expected to attract Korean EV manufacturers.
“Yes, I think so because Korea is quite advanced in electric cars,” Korean Chamber of Commerce of the Philippines president Joseph Um told reporters when asked if the planned EV incentives may attract Korean manufacturers into the country.
The Department of Trade and Industry (DTI) recently said the government is planning to incentivize the manufacture of four million EV units in the next 10 years to accelerate the shift from the traditional motor vehicle models to EV.
In a presentation at the recent Philippine Electric Vehicle Summit (PEVS),” Trade Undersecretary for Innovation and Competitiveness Group Rafaelita Aldaba said the government is looking at setting the local production targets to be achieved within eight to 10 years from the promulgation of the EV incentive strategy (EVIS).
The trade official said 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. This is going to complement the CARS program, but of course it will be dedicated toward 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.
Aldaba said the incentive scheme would 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 plans 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.