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P3-B subsidy package for E-PUV manufacturing

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.