The country’s biggest assembler of vehicles renewed its petition to include hybrid vehicles in the government’s incentives package.
Toyota Motor Philippines (TMP) expressed optimism the government would include hybrid for full exemption on tax breaks, after the National Economic development Authority (NEDA) recommended the extension of incentives to cover all electric vehicles (EVs) including e-motorcycles,
“We continue to seek NEDA’s [approval] to extend the full excise tax exemption to hybrid vehicles now that EO 12 is up for mandatory one-year review,” said TMP chief executive Alfred Ty.
Executive Order (EO) 12 reduced the tariff rate for certain types of EVs down to zero from 5 percent to 30 percent.
Under the EO, EVs such as kick scooters, pocket motorcycles and self-balancing cycles are included in the tax breaks. Two-wheeled electric motorcycles are still subject to 30-percent import duty, while imported hybrids get 50-percent off from applicable excise taxes.
Toyota is also stepping up efforts to expand its footprint in electrified mobility by bringing in more hybrid models and pure electric vehicle models.
Toyota launched 1 pure electric vehicle and 7 hybrid models in the Philippines. Despite enjoying 50 percent of tax breaks given to full EVs, sales of hybrid units is gaining traction, as more users learned to appreciate the value of mileage with less fuel or zero fuel consumption, Ty said.
Toyota accounted for 47.25 percent of the Philippine automotive market with 16,093 units sold in January 2024.
It remained the best selling brand in 2023 with a market share of 46.54 percent and total sales of 200,031 units.
