Despite the various laws that incentivize investors for electric vehicles, an official of the Board of Investments, and an EV group revealed that the Philippines lags against its Southeast Asian counterparts.
In particular, the number of EV charging stations needed to power up electric vehicles is way behind the 7,000 plus eyed charging stations by 2025 based on the Government's Comprehensive Roadmap for the Electric Vehicle Industry or CREVI.
The current number of charging stations that are now operating throughout the country is 338, far from the 7,300 charging stations for 2023 to 2025, as bared by Neil Stephen Lopez, assistant executive director of the Electric Vehicles Association of the Philippines, during his presentation at the launch of Auto Parts Philippines Expo in a hotel in Pasay City.
“Definitely, there is a lot to be done when it comes to installing charging stations. Rest assured that government agencies and industry stakeholders are working hand in hand. But in the last two years, with the growth of charging stations, we are seeing acceleration and it is quite faster than expected,” said Lopez.
The CREVI program, which presents an opportunity for the Philippines to establish a strong foothold in the EV industry, create new jobs, and enhance its position as a leader in sustainable transportation, targets to produce 311,700 EVs in the short term, and 850,000 EVs in the long term.
For his part, Elvin Raymond Garcia, supervising investment specialist for the Heavy Industries Division of the BoI said what bothers foreign investors to put investments on EVs is the current tax incentives that are not rationalized.
“Some players want to integrate the tax incentives of the CARS program and CREATE, which is at the moment, the advocacy of the BoI. Tax incentives were just one of the hindrances that some investors in the EVs and automobile industry are not comfortable with. We have a lot of competitors in the ASEAN region such as richer countries like Thailand and Indonesia where the supply chain is more complete,” he said.
Garcia said the Philippine EV industry “is currently so small that can’t be noticed compared to ASEAN rivals.”
“Last year’s sale of battery electric vehicles was just around 496 units, and for the hybrid vehicles, it was just 9000 compared to Thailand which already has 10 percent of the total EV market share in the world. But we hope to reach the levels of Thailand soon and even surpass their numbers with CREATE, EVIDA, and the SIPP Laws,” he said.
Programs and laws that support the EV industry include the Motor Vehicle Development Program which provides one percent to zero duty-free importation of EV parts/components; the TRAIN Law that gives EVs exemption from the excise taxes, while 50 percent reduction of applicable excise tax to hybrid cars; the EV Industry Development Act or EVIDA; the Corporate Recovery and Tax Incentives for Enterprises or CREATE Act, among others.
APVE
Meanwhile, organizers of the inaugural Auto Parts & Vehicles Expo Philippines or APVE will be mounted from 5 to 7 June 2024 at the World Trade Center Metro Manila in Pasay City—a new platform for local, international, and regional suppliers of automotive parts, accessories, maintenance equipment, and tools, aimed at gathering over 4,000 potential buyers and sellers from across the country and the region.
More than 120 regional and international exhibitors are expected to showcase the latest products and solutions in the industry.
It will also facilitate a forum for productive discussions about solutions and best practices that can enhance efficiencies and profits for all scales of businesses in the consumer and commercial automotive industry.
“We are thrilled to unveil the game-changing platform for the automotive industry that will congregate top industry leaders, buyers, and sellers to connect and unlock new growth opportunities,” said APVE Deputy Event Director Alwin Seow.
Informa Markets, the organizer of the APVE 2024, is committed to utilizing its trade show expertise to make this event an advanced networking, exhibition, and knowledge-sharing platform that would redefine automotive standards.
“Explore new partnerships through networking opportunities, discover the latest trends and developments, and find cutting-edge products and solutions during the three-day APVE 2024,” said Rungphech ‘Rose’ Chitanuwat, Informa Markets General Manager in the Philippines.
“APVE is open for exhibitors, trade buyers, businesses, and consumers not just from the automotive sector but also from related industries like mining, construction, logistics, transportation, and agriculture,” she added.
APVE 2024 will be the largest in the Philippines to focus on auto parts and vehicles, amid impressive growth of domestic annual vehicle sales in the post-pandemic period.