Pasay City: The Department of Trade and Industry (DTI) has launched the Electric Vehicle Incentives Scheme (EVIS) aimed at promoting the local electric vehicle (e-vehicle) manufacturing sector. During the 11th Philippine Electric Vehicle Summit held on Friday, DTI Undersecretary Rafaelita Aldaba stated that the program seeks to manufacture four million e-vehicles locally over the next decade.
According to a news release by Philippine News Agency, the majority of these locally produced units will consist of two-wheelers, e-trikes, e-PUVs (public utility vehicles), and eBuses. The Philippines aims to establish itself as a competitive exporter of e-PUVs and two-wheelers in the Southeast Asian market under this initiative.
Two Support Types to Drive e-Vehicle Industry
Aldaba outlined two forms of support provided under the EVIS. "We are directing the support not only on the supply side but also on the demand side," she said. A key component of EVIS is the e-PUV Program, targeted at the commercial electric vehicle market. "This will be a CARS (Comprehensive Automotive Resurgence Strategy)-like program focused on the manufacturing of commercial vehicles," Aldaba added.
The e-PUV Program aims to bolster the country's manufacturing capabilities for e-PUVs and to foster local expertise in light truck platforms and social purpose vehicles, including UV Express vehicles, other PUVs, trucks, and buses. It complements the existing CARS Program, which offers fiscal incentives to carmakers for local production and tax benefits for each locally assembled unit sold.
Fiscal Incentives for Battery Manufacturers and Buyers
The EVIS also incorporates the e-PUV+ Program, covering passenger cars, green metal mining and processing for electric vehicles, auto electronics, and charging infrastructure. Aldaba noted that under this program, the government could provide fiscal incentives in line with the Corporate Recovery and Tax Incentives for Enterprises law.
For battery manufacturers specifically, the DTI is considering support that covers 50 percent of the capital expenditure, with certain limitations. In addition, the e-PUV+ Program proposes incentives for e-vehicle buyers, including potential discount vouchers amounting to PHP500,000 per unit for e-PUVs, PHP10,000 per unit for e-bikes, and PHP20,000 per unit for three-wheelers.
However, Aldaba emphasized that these figures are not yet final. "We still need the go signal from our principals," she said. The overarching aim of these incentives is to bridge the cost disparity between traditional and electric vehicles and accelerate the transition to electric models.