Use of EVs gaining ground, group says

MANILA, Philippines: The use of electric vehicles has gained ground, the Electric Vehicle Association of the Philippines (EVAP) said, as it reported a six-fold increase in EV sales in the first quarter of 2023 compared to figures in 2022.

The group said that from January to March last year, 2,536 EVs were sold, 495 percent higher than the 426 electric vehicles sold for the whole of 2022.

EVAP projects around 6.6 million EV sales in the country by 2030.

The substantial rise in EV sales is credited to Executive Order No. 12 which modified the tariff rates for certain EV types and their parts and components to zero.

EO12 was enacted to complement the Electric Vehicle Industry Development Act (EVIDA) to create an industry for EVs in the country and help reduce carbon emissions, in compliance with the Philippines' commitment to the Paris Agreement.

However, e-motorcyles were not included in the list of EVs granted tax breaks under EO12, to the consternation of some stakeholders. They pointed out that two-wheeled EVs should be included in the list to enable the country to shift to EVs quicker.

A study by global research and consulting firm Frost & Sullivan titled "The Future of Electrified Vehicles in Southeast Asia" showed that Filipinos are receptive to the shift to EVs due to their concern for the environment and climate change.

Vin Ching, an advocate of green transport, said that the monetary incentive for the inclusion of e-motorcycles in the list of EVs that benefit from tax breaks will be significant.

"The inclusion of e-motorcycles will benefit those from the working class, those who really need transportation... it will also be necessary in order to give true meaning to the intent and purpose of the EVIDA law and the executive department," he said.

EO12 is due for review and the National Economic Development Agency is expected to submit its recommendations to the Office of the President once the evaluation is finished.

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