DoE looking to expand EV incentives
THE Department of Energy (DoE) will start discussions on relaxing and expanding incentives to vehicles that are powered 100 percent by electricity or through a hybrid system.
“We have already flagged this before the secretaries that we really have to extend incentives to include hybrid, two-wheel type and three-wheel type EVs and give them a zero-tariff treatment just like with pure EVs,” said Energy Undersecretary Felix William Fuentebella.
At present, only pure electric vehicles (EVs) enjoy the zero-import duty privilege.
He added that discussions on the issue are scheduled for February and that the Tariff Commission and the DoE-Energy Utilization Management Bureau (EUMB) are working with the Department of Trade and Industry to come up with a cost-benefit analysis.
EUMB Director Patrick Aquino said President Ferdinand Marcos Jr. could issue an executive order on the issue before Congress starts its summer break.
“Note that if we ever do not get that done by then, then the Congress break for summer will be the next issuance window. So overall, we are hopeful that everything will be in place within the year, but note that for the publishing of the executive order, both the Senate and the House of Representatives must not be in session,” Aquino said.
EV expansion also depends on policy
In a separate interview, Nissan Motor Asia Pacific Co Ltd. President Isao Sekiguchi said that increasing the number of EVs in the Philippines will also depend on government policies.
He said EV penetration in the country is expected to be small compared to other markets in Southeast Asia.
“In terms of EV penetration, the growth markets in Southeast Asia differ, but in the Philippines [and] Indonesia, it is expected to grow by 5 to 10 percent in several years. Singapore is leading the said market, with Thailand being just behind it, and the Philippines being marginal in comparison,” Sekiguchi said.
“For the Philippines, I think EV penetration will definitely come, but what I can see is that it will come down to specific [government] policies, whether it is for subsidizing to purchase EVs or for various types of benefits,” he added.