The Electric Vehicle Association of the Philippines (EVAP) is pushing for the extension of fiscal and non-fiscal incentives for electric vehicles (EVs) to 2040, in line with the government’s target of having at least 50 percent of all vehicles on the country’s roads powered by electricity.
EVAP vice president Carla Buencamino said the industry group is hoping to extend the current set of incentives for EVs beyond their expiry to support wider adoption in the country.
“For the industry, we hope that the incentives extend to 2040 so that it continues to grow and more people are encouraged to adapt to EVs,” Buencamino told reporters last week.
Under Executive Order (EO) No. 62, EVs such as battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs) are currently entering the country at zero duty until 2028.
BEVs and HEVs are eligible for discounts of 30 percent and 15 percent, respectively, on motor vehicle user’s charge (MVUC) for a period of eight years or until 2030 under the Electric Vehicle Industry Development Act (EVIDA).
EVIDA’s non-fiscal incentives, which are also due to expire in 2030, allow EV users to receive priority registration and renewal of registration and exemption from the number-coding scheme, among others.
The Department of Energy (DOE) said in July that it will propose the continuation of fiscal incentives for EVs to 2040 to support President Ferdinand Marcos Jr.’s long-term target.
Marcos said in his recent State of the Nation Address (SONA) that the government’s goal is for EVs to make up half of all vehicles on the country’s roads by 2040.
If granted, Buencamino said the extension of these incentives is the ideal scenario since it would show that the government itself is taking the lead in the transition to EVs, making it easier for the private sector to follow suit.
“There is already a lot of adoption within the private sector and we hope that this continues as the government continues to support the transition,” she said.
Beyond sustaining these incentives, Buencamino said the government should also consider further improving these initiatives by extending them to charging infrastructure and manufacturing.
In line with EVIDA, the government is preparing the rollout of its EV incentive strategy (EVIS), aimed at encouraging local EV manufacturing through incentives worth a total of ₱60 billion.
Meanwhile, the DOE is also working on a program to streamline permitting for EV charging stations, which is expected to accelerate their rollout across the country.
Based on data from the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association (TMA), EV sales from January to July more than doubled to 38,286 units from 16,195 units a year ago.
EVs accounted for 15.84 percent of total automotive sales in the seven-month period, higher than the 6.02-percent share in the same period last year.
