Laying the Foundation for an Emerging Electric Vehicle Industry – BusinessWorld Online

The widespread adoption of electric vehicles (EVs), once thought of as a science fiction-like dream, could be happening in the near future in the Philippines.

Among President Rodrigo R. Duterte’s latest endeavors as the nation’s chief executive is the approval of Republic Act No. 11697, or the Electric Vehicle Industry Development Act (EVIDA), an act aimed at regulating and developing the electric vehicle (EV) industry in the Philippines. . The measure outlines the regulatory framework for the manufacture and adoption of electric vehicles, and includes quotas for their adoption by various industries such as freight logistics, food delivery companies, travel agencies and service providers. public.

According to the Palace, the main objective of the policy is to promote the industry as a “feasible mode of transport to reduce dependence on fossil fuels”. The administration adds that the law governs “the manufacture, assembly, importation, construction, installation, maintenance, trade and use, research and development, and regulation of electric vehicles.” .

The roadmap will include an annual work plan to “accelerate the development, commercialization and use of electric vehicles” and recognizes preferential parking locations for electric vehicles and charging stations in dedicated spaces as the key to their adoption. In fact, the law states that establishments with 20 or more designated parking spaces must dedicate 5% of their space to the use of electric vehicles and provide charging stations.

The law also establishes manufacturing standards for “electric vehicles, batteries and facilities, including recycling facilities, parts and components, and charging stations and related equipment,” which will be overseen by the ministry. Energy, who will also lead the electric vehicle adoption campaign.

EVIDA has breathed new life into an industry that has long struggled to gain mainstream attention. As the law provides for the creation of a comprehensive roadmap for the electric vehicle industry, it will create a concrete development plan for the electric vehicle industry on its way to widespread commercialization of the technology.

The law also highlighted other measures aimed at driving the adoption of electric vehicles in the Philippines, such as the Department of Trade and Industry (DTI) proposal for a zero tariff on imports of electric vehicles. compared to the current rate of 30%.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) said the tariff suspension proposal is in line with EVIDA and will support the global adoption of electric vehicles.

“CAMPI supports all EV technologies, including Hybrid Electric Vehicles (HEV), Plug-in Hybrid Electric Vehicles (PHEV) and Battery Electric Vehicles (BEV). All of these have the potential to reduce fuel consumption and mitigate vehicle emissions in the medium to long term,” CAMPI President Rommel R. Gutierrez said in a statement.

“The scope of the proposal is consistent with the definition of electric vehicles under EVIDA, which includes HEVs, PHEVs, BEVs and light electric vehicles,” he said.

The group shared additional information on the adoption of electric vehicles in the private vehicle market, saying that adoption of electric vehicles is growing as its members begin to offer electric vehicles to original equipment manufacturers. .

“Private vehicles represented around 94% of the total vehicle fleet (excluding trailers and motorcycles) in 2021. In terms of fleet size, there is no doubt that the electrification of private transport will significantly reduce fuel consumption and vehicle emissions,” CAMPI said.

“While many factors affect the widespread adoption of electric vehicles, the group is optimistic that the EVIDA measures and the 0% tariff proposal are moving the automotive industry in the right direction in terms of vehicle electrification. “, he added.

Another benefit of EVIDA is that it will attract investor interest in the country, especially in the technology sector, as it accelerates manufacturing capabilities.

“With EVIDA, the Philippines is now in a better position to attract more technology investment and create high-value jobs by leveraging the ongoing global transition to electric vehicles (EVs),” the Secretary of Commerce said. Ramon M. Lopez, in a statement.

“This measure (is) a move towards reducing the direct use of petroleum products in transport, thus meaning a reduction in air and noise pollution in urban areas. It will also reduce the direct dependence of the sector transport to oil, especially in the context of rising fuel prices which affect both businesses and consumers,” he added.

EVIDA directs the Board of Investments to create an Electric Vehicle Incentive Strategy (EVIS) that will provide tax and non-tax incentives to reduce the production cost gap between electric vehicles and traditional vehicles. According to Undersecretary of Commerce Rafaelita M. Aldaba, the law will be critical amid growing competition in the ASEAN region to attract investment in electric vehicles.

“EVIS will enable the government to provide competitive, industry-specific tax and non-tax support to attract private sector investment in strategic EV segments, particularly manufacturing, which is a critical step to deepening our participation in the regional automotive value chain,” said Ms. Aldaba.

The DTI said EVIDA will serve as a model for comprehensive and coordinated policy direction among national government agencies in terms of promoting EVs to ensure investor confidence and attract EV-related investments, as well as position the country to reap the benefits of investing in the emerging global electric vehicle industry.

“EVIDA aims to promote innovation in clean energy and sustainable transportation while developing a nascent industry in the country and generating more jobs,” the DTI said. — Bjorn Biel M. Beltran

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