EVAP pushes localized production of EVs, lauds incentives for e-motorcycles

The Electric Vehicle Association of the Philippines (EVAP) is in support of giving incentives for electric motorcycles along with their localized production in the future.

In an interview, EVAP President Edmund Araga said that giving incentives to e-motorcycles is welcome as it will help with the electrification of transport in the country.

Araga made the response when asked regarding the statement of the Department of Trade and Industry saying that EVAP requested to retain the tariff for e-jeepneys and e-tricycles.

He affirmed their request but noted that e-motorcycles were not included in their request to retain the tariff as there are no local producers of them yet.

The Philippine government in January released Executive Order No. 12 series of 2023 which gives EVs and their components tax breaks for the next five years with the exclusion of e-motorcycles, as they are still subject to a 30 percent tariff rate.

“It will be welcome on our part kung bibigyan din sila [e-motorcycles] kung mabibigyan din sila ng exception. Kasi sa ngayon, wala pa talagang legit na makakagawa sa amin ng e-motorcycles, in particular. And that this would be a good opportunity… kung sakaling ipu-push ang e-motorcycles,” Araga said.

“Kung mag-iimport sila [dapat] mayroong direksyon o directives na maglolocalize sila in a number of years after importing the units para magkaroon naman ng job creations and the capabilities of Filipino craftmanship and skills, ma-enhance,” Araga said.

Araga said that he also supports this move as motorcycles are the primary choice of transport among Filipinos, being relatively more affordable than four-wheeled vehicles.

According to the Statista Research Department, there are around 7.81 million registered motorcycles and tricycles, compared to the 1.27 million registered private cars in the country as of 2022.

Several prominent figures of the transport industry in the country also aired their support to give tax breaks to e-motorcycles like Stratbase ADR Institute President Dindo Manhit, who said that e-motorcycles’ exclusion in the tax breaks is ‘unjustified.’

Mobility advocate and Electric Kick Scooter of the Philippines President Tim Vargas also shares the same sentiments, noting that e-motorcycles’ introduction will create a new emerging market.

The Philippine Business for Environmental Stewardship also backs the revision of the EO, noting that it should be inclusive to help complement the rising fuel prices.

EO12 will have a review and possible amendments by February 2024 led by the National Economic Development Authority.