CAMPI for zero tariff on all EV technologies

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) has called for the inclusion of all electric vehicle (EVs) technologies, including hybrid EVs, in the planned removal of the 30 percent most favored nation (MFN) tariff on zero tariff completely built-up EVs.

In a statement, CAMPI said that its proposal is consistent with and complementary with the Republic Act No. 11697 or the Electric Vehicle Industry Development Act (EVIDA).

CAMPI issued the statement following the position of the Electric Vehicle Association of the Philippines (EVAP) to exclude hybrid EVs or the HEV, and limit the zero tariff privilege to full EVs and plugin hybrid electric vehicles (PHEVs) only.

“CAMPI supports all EV technologies including HEVs, and battery electric vehicles BEVs. All these have potential for fuel consumption reduction and vehicle emission mitigation in the mid- to long-term,” said CAMPI President Rommel Gutierrez in a statement released late Wednesday night,

May 18.

CAMPI noted that the scope of its proposal is consistent with the definition of

EVs under

EVIDA, which includes HEV, PHEV, BEVs and light electric vehicles.

Lapsed into law on April

15, 2022, EVIDA now embodies the national policy framework on EV development. CAMPI urged that all EV-related policymaking should give regard to this and not diminish EVIDA’s potential.

CAMPI further explained that EV adoption in the Philippines is still in its early stage. As such, CAMPI said it is not optimal to homogenize the EV requirements of the transport fleet as different users have varying considerations for EV adoption.

For instance, CAMPI said, the EV requirements and motivation for adoption of public utility vehicle operators significantly differ from that of private transport users.

Private vehicles accounted for approximately 94 percent of the total vehicle fleet (excluding trailers and motorcycles) in 2021. In terms of fleet size, there is no doubt that electrification of private transportation will substantially reduce fuel consumption and vehicle emissions.

CAMPI is looking at the gradual electrification of the private vehicle segment with its members offering a whole range of OEM EVs.

“OEM EV technologies are backed up by years of research and development. It cannot be

oversimplified by focusing on only one component of the EV drivetrain system”, Gutierrez said.

CAMPI believes that EVIDA measures and the zero MFN tariff proposal put the automotive industry in the right direction in terms of vehicle electrification.

In its submission to the Tariff Commission, which is conducting public consultation for the proposed temporary suspension of the MFN tariff for EVs, EVAP pointed out that HEVs are conventional vehicles using the internal combustion engine (ICE).

“HEVs don’t contribute in diversifying energy HEVs are actually internal combustion engine or conventional vehicles in the sense that they source their power solely from petroleum and charging is done via its internal combustion engine,” stated the position paper signed by EVAP President Edmund A. Araga.