PH eyes 21% EVs of all vehicles by 2030

Electric vehicles (EVs) are projected to account for 21 percent of total vehicles on the road in the Philippines by 2030, ultimately becoming the third auto manufacturing hub in ASEAN and a global manufacturing hub for low-cost transportation and commercial vehicles.

This is part of the Comprehensive Roadmap on EVs being crafted by the Department of Trade and Industry (DTI) and the EV Association of the Philippines (EVAP) presented by DTI Director Evariste Cagatan at the 8th Philippine Electric Vehicle Virtual Summit.

The roadmap targets to achieve 21 percent EVs of total vehicles in the country by 2030 with focus on public transportation, and 50 percent by 2040.

Ultimately, the government aims to become the third auto manufacturing hub in ASEAN and a global manufacturing hub for low-cost transportation and commercial vehicles. The program will capitalize on the strong and sustained demand and the country’s comparative advantage for parts.

The target is also anchored on the Senate Bill No. 174 or The Electric Vehicles and Charging Stations Act of Senator Sherwin Gatchalian.

According to Cagatan, the bill seeks to provide the EV Incentive Strategy (EVIS), a comprehensive fiscal and non fiscal support to jumpstart the development and accelerate EVs in the next 10 years.

It will also provide innovation, R and D and hr development support.

The EVIS will be similar to CARS (Comprehensive Automotive Resurgence Strategy) Program where government provides subsidy to EV manufacturers adhering to the principles of being time bound, fiscal cap, performance-based, transparent and targeted.

EVIS is proposed to be two pronged – support the manufacturer of EV units and manufacture of strategic EV parts and components such as battery and auto electronics in which the country has comparative advantage.

In addition, the EVIS is also envisioned to introduce consumer subsidies to narrow further the cost between traditional motor vehicles and EVs from the demand side therefore accelerating consumer adoption and transition.

While the bill is still being processed, Cagatan said EV manufacturers and parts components can avail of the incentives of the Board of Investments (BOI) through the Investment Priorities Plan for manufacturing of EV, strategic EV parts and components, batteries and operation of charging stations.

BOI incentives include 4-8 years of income tax holiday and exemption of duties on imported capital equipment, preferential tariffs on the importation of completely knocked down sets are also provided to EV company participants through the Motor Vehicle Development Program.