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Friday, May 24, 2024

PH e-vehicle industry wants hybrids excluded from list of zero-tariff cars

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The Philippine electric vehicle industry seeks a “strategically calibrated” government decision on petitions seeking to extend zero tariff on two-wheeled and hybrid electric vehicles (HEVs).

The Electric Vehicle Association of the Philippines (EVAP), during the review of Executive Order No. 12 Wednesday, told the Tariff Commission (TC) that broadening the scope of tariff cuts and/or exemptions on models not previously covered by EO 12 should be able to support the local EV and charging infrastructure industry development.

EO 12 temporarily brings down import tariffs on electric vehicles to 0 for a period of 5 years to allow for investments on EV to come in and create a thriving ecosystem of sustainable mobility network.

EVAP, in a position paper, mounted strong opposition to include HEVs in the scope of EO 12, saying hybrids do not contribute to the development of the charging infrastructure which is one of the main objectives of the Electric Vehicle Industry Development Act (EVIDA).

It said a further reduction in prices of HEVs would be detrimental to the growth of battery EVs (BEVs) and slow down the development of charging infrastructures.

EVAP agreed to the inclusion of electric motorcycles for zero import tariff, but only for one year. It said this should come with a condition that the motorcycle industry should carry out CKD (completely knocked down) operations for the same model or a second model once the exemption expires on the second year.

EVAP said a longer tariff exemption period for e-motorcycles could undermine efforts to jumpstart and develop the local e-motorcycle manufacturing industry.

The group suggested that the government seriously reconsider proposals to extend 0 tariff on EVs that can transport 10 persons or more.

It said the local electric jeepney manufacturing industry is on a survival mode, and allowing duty-free entry of e-jeepney or similar vehicles would undermine the EV incentive strategy.

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