The Department of Energy (DOE) has started preliminary work on the Comprehensive Roadmap for the Electric Vehicle (EV) Industry (CREVI) which will provide the timeframe for the 5 percent mandatory share of EVs in corporate and government fleets in key sectors.
CREVI will be presented for public consultations once finished.
The 5 percent mandatory share of EVs on vehicle fleet aims to generate demand and develop the industry and is seen to provide the biggest motivation for the EV sector.
Patrick Aquino, director of the Department of Energy’s (DOE) Energy Utilization Management Bureau, recently presented the entities which will be required to ensure 5 percent of their fleets are comprised of EVs.
These are: industrial and commercial companies such as cargo logistics companies, food delivery companies, tour agencies, hotels, power utilities and water utilities; public transport operators, including mini buses, buses, jeepneys, vans, tricycles, taxis, and transport network vehicle services and; local government units , national government agencies and government-owned and controlled corporations
Trade Secretary Alfredo Pascual recently bared the Tariff Commission has recommended the elimination of duties on EVs from 30 percent for a limited time. The recommendation is yet to be approved by the Inter-agency Committee on Tariff and Related Matters.
The Electric Vehicle Industry Development Act (EVIDA,) or Republic Act No. 11697, was passed into law last April 15 with the aim to provide a national policy framework for domestic EV industry development. Among the law’s key objectives are to reduce air pollution, ensure the country’s energy security, and cut reliance on imported fuel for the transportation sector amid soaring oil prices through use of electricity and renewable energy.
With its passage, the new law is seen to address major challenges to the growth of the EV industry including a small market, the high initial cost of units, a support infrastructure for EV industries, and financing mechanisms for EV projects.
The legislation is also expected to provide opportunities for manufacturers, importers and local investors through fiscal incentives such as reduced importation taxes and duties under the Strategic Investment Priority Plan (SIPP), special discounted unit price for EVs and hybrid EVs, and preferential interest rates from banks.
For non-fiscal incentives, EVs are to be given priority registration and renewal with the Land Transportation Office, exemption from the number coding scheme, and streamlined customs processing of transportation parts and components, said Aquino.
In his presentation, Aquino underscored the importance of narrowing the cost gap between EVs and traditional vehicles through the short-term reduction of tariff. For EVs, there will be a 10.71 percent reduction in retail cost if the value-added tax (VAT) is excluded, a 29.22 percent reduction if VAT and tariff are excluded, and 61.3 percent reduction in retail cost should VAT, tariff and battery be excluded.
