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Sunday, May 26, 2024

Distributors expect electric vehicle sales in PH to increase by 30% this year

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Distributors of electric vehicles in the Philippines expect a 30-percent increase in sales this year, following the issuance of Executive Order No. 12 in January that allows the entry of certain types of completely-built up EVs at zero tariff until 2028.

Members of the Electric Vehicle Association of the Philippines said the EO effectively reduced the tariff of some automotive parts and components to 1 percent.

“EV has good prospects moving on to 2023. With 0 tariff starting Feb. 20, 2023, new orders of EVs become very competitive versus ICE [internal combustion engine],” said EVAP chairman Ferdinand Raquelsantos.

Raquelsantos said EV sales of 4-wheeled vehicles went up by 20 percent between 2021 and 2022.

He said that based on industry computations, the price of imported EV coming from the most favored nation would be reduced by 17 percent to 20 percent.

The EVAP’s price comparison showed that Jaguar I-Pace was priced at P7.99 million prior to the issuance of EO 12, but would be cheaper by 17.5 percent at about P6.59 million. Jaguar I-Pace is a full battery electric-vehicle.

Nissan full BEV Leaf may bring down its price by around P600,000 to P700,000 per unit from the original price of P2.7 million, a company official said.

Car enthusiasts are waiting for the entry of the iconic Tesla into the Philippine automotive market, but there is no official distributor yet, Raquelsantos said.

He said EV manufacturers from China would benefit the most from the tariff reduction compared to other exporters. Compared to Korean EVs that are taxed 5 percent, Chinese EV exports to the Philippines were coming from 30-percent tariff.

More than 20 EV brands are present the Philippines, including trikes, motorcycle, commercial vehicles and parts suppliers.

EVAP said that in 2022, some 10 EV manufacturers were keenly eyeing investment opportunities in the Philippines, as the government announced the re-allocation of the remaining P9-billion fund from the country’s biggest automotive incentives program to EV manufacturing.

Raquelsantos said EV manufacturers from 4 countries were queueing to apply for incentives under the Comprehensive Automotive Resurgence Strategy program.

Data from the Land Transportation Office showed that EVs across segments reached 13,943 units in 2021, from only 823 units registered in 2010.

The e-trike segment had the largest contribution with 7,220 units, followed by e-motorcycles with 5,520 units, and utility vehicles with 815 units. There were also 311 electric cars, 4 SUVs, 12 trucks and 10 buses.

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