The Philippines can look forward to transitioning to sustainable transportation with the passage of Electric Vehicle Industry Development Act (EVIDA) which will waive ad valorem duties on EVs.
But while EV sales globally have been surging the past year, EV sales are still lagging in other emerging and developing economies like the Philippines, according to Edmund Araga, president of the EV Association of the Philippines (EVAP).
In a press conference yesterday announcing the 10th Philippine Electric Vehicle Summit (PEVS), Araga said the few models that are available in developing countries remain unaffordable for mass-market consumers.
Araga said Republic Act No. 11697 promotes EV adoption coupled with fiscal incentives.
Emerging EV markets like the Philippines will give charging infrastructure players the incentive to enter the country, creating a virtuous cycle of EV adoption.
But he emphasized the government’s willingness to introduce fiscal incentives as customers should not pay so much premium for EVs.
Under a proposed executive order now awaiting approval by the inter-agency Cabinet committee on tariff and related matters, duties on imported EVs, regardless of source would be eliminated. At present, duties are at 5 and 30 percent.
Estimates would show the price of electric passenger car could drop to P1.2 million from P1.5 million, or a savings of P300,000.
EDIVA seeks to incentivize the rapid adoption of EVs 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.
“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.
Araga, citing the 2022 Global EV Outlook of the International Energy Agency said there has been a massive jump in EV adoption worldwide during the past year.
Sales of EVs doubled in 2021 from the previous year to a new record of 6.6 million and from just 120 000 units in 2012. Global sales of electric cars stood at 2 million in the first quarter, up 75 percent from the same period in 2021.
In the Philippines, there are close to 14,000 EVs deployed around the country of which half or 7,220 are e-trikes.
The 10th PEVS on October 20 and 21, at the SMX Convention Center Manila is themed “United In Driving Electromobility in Support of EVIDA,”
