DTI proposes perks for manufacturing, use of e-vehicles

MANILA, Philippines — The Department of Trade and Industry (DTI) is coming up with a draft executive order (EO) for a proposed incentive scheme to encourage the manufacture and use of electric vehicles (EVs), which it hopes to present to President Marcos this year.

Trade Undersecretary Rafaelita Aldaba told reporters on the sidelines of the German-Philippine Chamber of Commerce and Industry’s forum that the DTI wants to complete the draft EO and have it presented to Marcos “within the year.”

Aldaba said the DTI has formulated an EV incentive scheme that would provide fiscal and non-fiscal support to both manufacturers and consumers.

She said the DTI is looking to replicate the Comprehensive Automotive Resurgence Strategy (CARS) program in the EV industry, with a focus on electric public utility vehicles (e-PUVs).

Under the CARS program, vehicle assemblers are provided fiscal support in exchange for investments for the production of their enrolled vehicle model in the program.

“We see this, the focus on the commercial EV market as an opportunity because with the new EV technology, it would require fewer and simpler parts,” Aldaba said.

The proposed EV incentive scheme aims to build the country’s automotive manufacturing capacity and capabilities for a flagship commercial vehicle model, the e-PUV, which can compete in the global market in the future.

Under the consumer subsidy program, Aldaba said the DTI is looking to provide support amounting to P500,000 per unit for e-PUVs,  P10,000 per unit for electric two-wheelers and P20,000 per unit for electric three-wheelers.

The DTI estimates four million EVs to be manufactured in the next 10 years, with the majority being electric two-wheelers and e-trikes, e-PUVs and e-buses.

For the manufacturers, Aldaba said the DTI would still want to offer incentives under the Corporate Recovery and Tax Incentives for Enterprises Act.

“For the battery manufacturers, we’re looking at support something like 50 percent of the capex, excluding land, and a maximum of P3 billion per two-gigawatt plant. And we’re targeting like five plants,” she said.

The DTI is also looking at providing consumers with direct financial rebates or discounts when they purchase an EV to reduce the vehicle’s upfront cost and make them more accessible.