Zero tariffs drive demand for electric vehicles

MANILA, Philippines — More electrified vehicles are expected to be seen on the road as sales of these are likely to continue to pick up amid government’s move to bring down tariffs and the introduction of more EV types and variants, according to the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI).

In an interview with reporters, CAMPI president Rommel Gutierrez said the group expects sales of electrified vehicles to continue to increase this year.

He said electrified vehicles covering hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles accounted for around four percent of the total motor vehicle sales of the CAMPI as of the first semester.

Combined sales of CAMPI and the Truck Manufacturers Association rose by 11.8 percent to 226,279 units in the first semester of this year from 202,415 units in the same period last year.

While the group expects the sales of electrified vehicles to continue to pick up, he said its share in total vehicle sales is unlikely to reach 10 percent this year as demand for internal combustion engine (ICE) vehicles is also still increasing.

“We might not reach 10 percent (share for electrified vehicles) because ICE is really going up,” he said.

But in terms of sales volume, he said electrified vehicles being sold are picking up.

He said Executive Order 12, which expanded the coverage of the EVs that can enjoy zero tariffs to include HEVs and PHEVs until 2028, is helping drive the demand for these types of vehicles.

The government expanded the coverage of the lowered tariffs to encourage the adoption and development of EVs.

“We are of course cautious because yearly that (EO) will have a review on the performance. So, we really have to make good on the expectation,” Gutierrez said.

Aside from the EO, he said many automotive firms are pushing for EVs.

“Brands are really bringing in (EV models) because they see the potential, led by Toyota,” he said.

Toyota Motor Philippines Corp. president Masando Hashimoto said the automotive firm, which believes there are multiple paths to vehicle electrification, has expanded its HEV offerings in the country.

Chery Auto Philippines managing director Froilan Dytianquin said China is now moving to full electrification with most of the cars there being either HEVs, PHEVs or pure EVs and the same trend is likely to be seen in the country as many Chinese automotive brands are making their way into the local market.

“We believe that the hybrids or the electrified vehicles are really going here and they’re going to be introduced. In fact, most of the Chinese brands now, even not in the CAMPI association, are also featuring more hybrid vehicles,” Dytianquin said.

“So I guess this is something that we should already prepare for and be able to accept,” he said, noting that the market, particularly young consumers, are ready to welcome new technology being offered.

Gutierrez said the CAMPI’s Philippine International Motor Show to be held in October, however, will not just focus on electrified vehicles, but will still showcase ICE vehicles.

“There will be new launches,” he said.