Korean EV firms explore parts manufacturing in PH

Korea’s electric vehicle (EV) players are exploring potential investment opportunities in electric vehicle parts manufacturing and EV assembly in the country, according to Trade and Industry Undersecretary Ceferino S. Rodolfo.

Rodolfo said that Korea’s electric vehicle companies from the Electric Vehicle Global Network (EVGN) participated in the First ASEAN Electric & Hybrid Vehicles Summit held in the country recently. The Philippines was the first to hold the ASEAN EV Summit, which already saw the establishment of the ASEAN Federation of Electric and Hybrid Vehicle Industries (AFEHVI).

“EVGN members explored for potential investment opportunities in electric vehicle (EV) parts manufacturing and EV assembly in the Philippines,” said Rodolfo.

During a meeting with the Korean delegation, the Korean EV association discussed its proposal for an EV project with the Electric Vehicle Association of the Philippines (eVAP). The Korean delegation, led by EVGN Chairman Dae-hwan Kim

Rodolfo, for his part, welcomed the initiative of the delegation saying this gesture further reaffirms the vision of the ASEAN to strengthen partnerships towards a greener transport system in the region and beyond.

The BOI is coming up with a comprehensive electric vehicle industrial roadmap that will address all elements, including fiscal and nonfiscal incentives, as the Philippines vies to become a production hub for some models of global car manufacturers.

It is more emboldened now to come up with an EV program following the signing of the establishment of the AFEHVI among e-vehicle industry associa- tions in each of the ASEAN countries.

The planned EV program may also include the modernization of the old, dilapidated and highly air polluting jeepneys in the country. The new and modern jeepneys may come as pure EV or hybrid. There are over 220,000 jeepneys of over 15 years old that need to be replaced.The Department of Finance said modernization of the public utility vehicle modernization program could reach over R400 billion.

In terms of taxes, the current proposed Package One of the Tax Reform Program by the Lower House has already exempted EVs and hybrid s of the 12 percent value added tax. It may also be granted exemption from the excise tax payments.

Importation of electric and hybrid vehicles may also be allowed duty-free because if these units are imported from the US ad EU they are slapped with 30 percent duty and 5 percent if from Korea and China.

Rommel Gutierez, president of the Chamber of Automotive Manufacturers of the Philippines, Inc., stressed that the reason Prius, the hybrid model introduced by Toyota Motor Philippines in 2009 in the local market, has poor market penetration is largely because it has no government incentives. Since 2009, there were only 100 units of Prius sold in the Philippines.

The BOI, however, cannot commit if the new incentive package for this industry would be better or superior than what other ASEAN countries are currently extending for e-vehicle players given the different conditions unique to each country.