Government urged to extend zero tariff on e-vehicles

MANILA, Philippines — Japanese maker of automobiles and motorcycles Honda Motor Co. Ltd. wants the government to extend beyond 2028 the implementation of the zero import tariffs on electric vehicles including hybrid electric vehicles (HEVs) to encourage the adoption of EVs in the country.

“If the Philippine government could kindly consider to extend this deadline of EO (Executive Order) 62, I think it will be positive for the automotive industry,” Toshio Kuwahara, vice president and head of regional operations (Asia and Oceania) at Honda Motor Co. said during the launch of the company’s electrification campaign in the Philippines.

He said extending the implementation of zero import tariffs would help accelerate electrification and encourage sales of EVs including hybrid models.

EO 62 modified the import duty rates of various products. This includes the expanded coverage of the zero import duty under EO 12 to include battery electric vehicles (BEVs), HEVs, plug-in HEVs and certain parts and components until 2028.

Honda Cars Philippines Inc. (HCPI) senior vice president Louie Soriano told reporters that it will also be beneficial for the automotive industry if the government lowers the excise tax imposed on hybrid models.

At present, pure EVs are exempt from  excise duty and import tariff.

Hybrid vehicles, meanwhile, enjoy zero import duty, but are imposed a 50-percent excise duty.

Kuwahara said the adoption of EVs in the Philippines is slow compared to other markets in the region like Thailand.

As Honda is aiming to expand its lineup of EV products and increase sales of such globally, the company also wants to accelerate its automobile electrification journey in the country.

“We will start by expanding our lineup of HEVs,” Kuwahara said.

Honda aims to have EVs account for 40 percent of its global sales by 2030 and to increase this further to 80 percent by 2035 before reaching 100 percent by 2040.

For the Philippines, Soriano said this means Honda would be pushing for the adoption of EVs.

As part of its aim to provide more electrified choices to Filipinos, HCPI president Rie Miyake said the company is expanding its hybrid models by launching the Civic e:HEV model.

She said more details on the Civic e:HEV model would be revealed during the Philippine International Motor Show (PIMS) next month.

At present, HCPI offers the CR-V e:HEV as part of its vehicle lineup.

Soriano said HCPI is selling an average of 80 units of the CR-V hybrid variant per month.

With the upcoming PIMS and the “ber” months when demand for vehicles typically increase, he said the company is optimistic of surpassing last year’s total vehicle sales.

HCPI sold a total of 16,645 units in 2023.

For the January to August period, HCPI’s sales  were down by 9.7 percent to 10,281 units from 11,385 units in the same period last year.

As part of the commitment to carbon neutrality, Honda Philippines Inc. unveiled Honda’s first two-wheeled BEV, the new EM1 e, which is installed with a high-quality lithium-ion battery.

Honda also unveiled a new range of direct-current handheld battery-powered products to make personal and professional tasks easier and highly efficient. These include a leaf blower, hedge trimmer, lawn trimmer and a chainsaw.

“All these new products are just the beginning of Honda’s journey to giving the community a safer, greener and sustainable future. Driven by a clear vision, we seek to achieve carbon neutrality across our entire product lineup and corporate activities by 2050,” Kuwahara said.