Removing the import duty on electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) could reduce the cost of EVs by as much as P300,000 a unit, the EV Association of the Philippines (EVAP) said.
EVAP Chairman Ferdinand Raquelsantos reiterated this call during the press conference for the 10th Philippine Electric Vehicle Summit on Oct. 20-21. According to Raquelsantos, an EV that costs P1.5 million can be had for P1.2 million, a P300,000 saving if the 30 percent import tariff is removed.
As of 2021, Raquelsantos said there are 13,934 units of EVs in the local market with e-trikes accounting for the biggest with 7,220 units followed by e-motorcycles with 5,520 units, utility vehicles with 815 units, cars with 311, SUVs 43, trucks 12, and buses 10.
The Tariff Commission, however, is still in the process of setting the import duty for EVs. The Department of Energy is batting for zero tariff for a period of five to seven years.
This developed following the effectivity of the Electric Vehicle Industry Development Act (EVIDA) or Republic Act No. 11697 on May 11 this year and its implementing rules and regulations on Sept. 20, 2022 following its publication.
For his part, EVAP President Edmund Araga cited the government’s willingness to introduce fiscal incentives as customers should not pay so much premium for EVs. He said that promoting EV adoption coupled with fiscal incentives in emerging EV markets like the Philippines will give charging infrastructure players the incentive to enter the country, creating a virtuous cycle of EV adoption.
In fact, Araga said at least 12 EVs across vehicle categories from global automotive brands BYD, Chery, Hyundai, Mitsubishi, and Weltmeister Motors will be showcasing their EV models during the two-day event.
Araga also cited the 2022 Global EV Outlook of the International Energy Agency. The outlook showed that sales of EVs doubled in 2021 from the previous year to a new record of 6.6 million.
Back in 2012, just 120,000 electric cars were sold worldwide. Last year, he said, nearly 10 percent of global car sales were electric, four times the market share in 2019. This brought the total number of electric cars on the world’s roads to about 16.5 million, triple the amount in 2018. Global sales of electric cars have kept rising strongly in 2022, with 2 million sold in the first quarter, up 75 percent from the same period in 2021.
The IEA report stated that the success of EVs is being driven by multiple factors. Sustained policy support is the main pillar. Public spending on subsidies and incentives for EVs nearly doubled in 2021 to nearly $30 billion.
While the 6.6 million EV Sales in 2021 were led by China (3.3 million), Europe (2.3 million) and the United States (630,000), by contrast, EV sales are still lagging in other emerging and developing economies, where the few models that are available remain unaffordable for mass-market consumers.
Given this global backdrop, Araga announced that this year’s PEVS will showcase the EV industry’s solidarity in fulfilling the policy objectives of the EVIDA, which took effect on 11 May 2022, and its implementing rules and regulations took effect on 20 September 2022 following its publication on 5 September 2022.
The law seeks to incentivize the rapid adoption of electric vehicles and charging stations in the country as it mandates 5 percent EV share in corporate and government fleets, dedicated parking slots for EVs, installation of charging stations in parking lots and gasoline stations, green routes in cities and municipalities, as well as fiscal and non-fiscal incentives for EV manufacturing, charging station importation, and EV utilization.
He said that the country can look forward to transitioning to sustainable transportation with the passage of EVIDA. “Aside from the climate benefits of electric vehicles, another important benefit of EVs which has come to the fore of public policy attention especially after the beginning of Russia's invasion of Ukraine is that EVs run on electricity and can therefore be an important contributor to reducing the use of oil in the country,” Araga said.
Themed, “United In Driving Electromobility in Support of the Electric Vehicle Industry Development Act (EVIDA) or Republic Act No. 11697,” the country’s biggest annual EV conference and exhibition will mark its first physical staging after two years of the COVID-19 pandemic. The event brings together stakeholders across the EV value chain including policymakers, regulators, academe, consultants, transport companies, power utilities and end-users to engage in policy dialogue as well as long-term collaboration to drive adoption of electric vehicles and deployment of the EV charging infrastructure in the country.