An executive order granting P3-billion subsidy
package for the electric vehicle manufacturing sector has been submitted to
Malacanang and is awaiting approval by President Duterte.
Trade and Industry Undersecretary Rafaelita
Aldaba announced that this subsidy package forms part of the incentives being
made available to Eco-PUV manufacturers for both domestic and export markets.
“We’re still waiting for the president’s
approval of this particular executive order,” said Aldaba, saying that this will
encourage more investments to modernize the transport sector and to support the
country’s positioning as a global manufacturing hub for lithium ion batteries.
Under the EO, the P3-billion subsidy will be
granted through tax credits to manufacturers of Euro 4 vehicles and electric
public utility vehicles.
Aside from the proposed subsidy, manufacturers
of battery for electric vehicles are entitled to zero excise duty, and 50
percent of the statutory rate for hybrid vehicles.
The country’s EV ecosystem is composed of 54
manufacturers and importers, 19 charging stations and 11 parts manufacturers.
In terms of industry focus, the Philippines is
leveraging its current strengths not only in EV assembly, but particularly in
auto electronics engineering services, outsourcing and EV battery charging
energy storage systems and recycling.
“We are also gearing, our strategy towards the
development of the electrified public transportation sector,” added Aldaba.
The DTI is projecting a total of 6.6 million
electric vehicles by 2030.