CAMPI backs suspension of tariffs on imported EVs

The Chamber of Automotive Manufacturers of a Philippines Inc. (CAMPI) is backing the proposed suspension of most favored nation (MFN) tariffs on completely built-up or imported electric vehicles (EVs) including hybrid EVs (HEVs) to help encourage its usage.

“CAMPI supports all EV technologies including HEV, plug-in hybrid electric vehicles (PHEV) and battery electric vehicles (BEV). All these have potential for fuel consumption reduction and vehicle emission mitigation in the mid- to long-term”, CAMPI president Rommel Gutierrez said in a statement.

To help encourage demand and investments in the EV industry, the Department of Trade and Industry is pushing to bring down the tariff on EVs to zero from the current 30 percent for a period of five years.

The proposed temporary removal of MFN tariff on EVs covers battery EVs (BEVs), HEVs, light EVs (scooters, bicycles), and plug-in EVs (PHEVs), as well as parts and components such as lithium-ion accumulators, motor controllers, and AC charging stations.

For CAMPI, the proposed temporary lifting of MFN tariffs on EVs is consistent with the definition of EVs under the EV Industry Development Act (EVIDA), which includes HEV, PHEV, BEVs and light electric vehicles.

EVIDA, which lapsed into law last month, provides the national policy framework to develop the local EV industry.

CAMPI believes all EV-related policymaking should give regard to this and not diminish EVIDA’s potential.

As local EV adoption is still in its early stage, CAMPI said it is not optimal to have uniform EV requirements for the transport fleet as different users have varying considerations to use EVs.

For instance, the EV requirements and motivation for adoption of public utility vehicle operators are different from private transport users.

Last year, private vehicles accounted for approximately 94 percent of the total vehicle fleet excluding trailers and motorcycles.

As such, the electrification of private transportation is expected to significantly bring down fuel consumption and vehicle emissions.

CAMPI is looking at the gradual electrification of the private vehicle segment through its offering of a whole range of OEM (original equipment manufacturer) 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.

“The performance of OEM EVs is measured in accordance with international standards,” he said.

CAMPI has been encouraging the adoption of all EV technologies since 2009.

While there are many factors affecting the adoption of EVs, CAMPI is optimistic the EVIDA and the zero tariff proposal would bring the local automotive industry on the right track for vehicle electrification.

Founded in 1995, CAMPI is the country’s leading automotive industry organization.

Composed of 20 member companies representing 24 global automotive brands, the group accounted for 85 percent of the total market sales last year.