The Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) is pushing for the coverage of all electric vehicles (EVs) in the tariff elimination on imports under a proposed executive order (EO).
Rommel Gutierrez, Campi president, said the group supports the EO which proposes the suspension of most-favored nation (MFN) tariffs on completely built-up EVs.
But Gutierrez said to remain consistent and complementary to Republic Act No. 11697 or the Electric Vehicle Industry Development Act (EVIDA), the tariff elimination under the EO should not exclude hybrid EVs (HEVs), contrary to the proposal of the EV Association of the Philippines.
EVAP in a position paper asked the Tariff Commission to exclude from the planned tariff elimination HEVs, saying these are internal combustion engine (ICE) vehicles that do not contribute to the energy source diversification aim of the move. EVAP said the zero duty should be limited to plug-in hybrid electric vehicles (PHEV) and full electric vehicles (EV).
Gutierrez said: “Campi supports all EV technologies including HEVs, PHEV and battery electric vehicles (BEV). All these have potential for fuel consumption reduction and vehicle emission mitigation in the mid- to long-term.”
He added the scope of the proposal is consistent with the definition of EVs under EVIDA, which includes HEV, PHEV, BEVs and light EVs and that any policy should not diminish the potential of EVIDA, the national policy framework on EV development. EVIDA lapsed into law on April 15, 2022.
Gutierrez said EV technologies of original equipment manufacture (OEM) are backed up by years of research and development.
“It cannot be oversimplified by focusing on only one component of the EV drivetrain system”, Gutierrez said, adding “the performance of OEM EVs is measured in accordance with international standards.”
Broadly, an EV is defined as a vehicle with at least one electric drive for vehicle propulsion.
It includes BEV, an electrically- propelled vehicle with only a traction of battery as a power source for vehicle propulsion ; HEV which has both a rechargeable energy storage system and a fueled power source for propulsion; light EV such as electric scooters,electric bicycles and electric personal transport and; PHEV or HEVs with a rechargeable energy storage system that can be charged from an external electric energy source.
Campi also stressed EV adoption in the Philippines is in its early stage but that it is not optimal to homogenize the EV requirements of the transport fleet.
“Different users have varying considerations for EV adoption,” Campi said, adding the EV requirements and motivation for adoption of public utility vehicle operators significantly differ from that of private transport users.
Private vehicles accounted for approximately 94 percent of the total vehicle fleet (excluding trailers and motorcycles) in 2021.
For Campi, in terms of fleet size, electrification of private transportation will substantially reduce fuel consumption and vehicle emissions.
Socco said the group is looking at the gradual electrification of the private vehicle segment with its members offering a whole range of OEM EVs.
Vince Socco, chairman of GT Capital Auto & Mobility (GTCAM) Dealership Holdings, noted the importance of exploiting all options to attain the country’s emission reduction goals.
Socco said HEVs are immediately deployable compared to BEVs which might take two to three years to create traction.
This is halfway through the five years of tariff elimination proposed by the Department of Trade and Industry.
“Electrification and the journey to carbon neutrality should not be narrowly defined as BEVs. HEVs are the first version of modern- day electric vehicles. It has a motor, battery and inverter which are the same essential components of every EV -whether BEV, PHEV, HEV or FCV (fuel cell vehicle). We need to exploit all sorts of solutions to move the journey along. There cannot be a one- size, fits-all,” Socco said.
He said the vision for a cleaner and more sustainable environment is a shared goal and responsibility of three sectors: government, OEMs and the consumer.
“But ultimately, the consumer gets to vote with their wallet. We cannot force consumers to choose electric; we need to give them all the reasons for them to adapt the technology,” he said.
GTCAM is a wholly-owned subsidiary of GT Capital and is the vehicle for the management of the Group’s mobility initiatives and automotive dealership for the Toyota and Lexus brands which are offering a wide array of HEVs in the market.
