CAMPI supports DTI proposal to suspend EV tariff

MANILA: The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) expressed support for the proposed suspension of Most-Favored Nation (MFN) tariffs on completely built-up electric vehicles (EVs).

CAMPI says that the proposal is consistent with and complementary to Republic Act No. 11697 or the Electric Vehicle Industry Development Act (EVIDA). 

The Department of Trade and Industry (DTI) aims for tariffs on EVs to be removed for five years in order to help encourage demand and generate investments for the EV industry, a report said.  

DTI's proposal for the temporary removal of MFN on EVs covers battery electric vehicles (BEV), hybrid electric vehicles (HEV), electric scooters and bicycles, plug-in hybrid EVs (PHEV), as well as parts and components such as lithium-ion accumulators, motor controllers, and AC charging stations, the report added. 

“CAMPI supports all EV technologies (BEV, HEV, PHEV)... All these have potential for fuel consumption reduction and vehicle emission mitigation in the mid-to long-term”, CAMPI President Rommel Gutierrez stated in a release. 

CAMPI further said that the scope of the proposal is consistent with the definition of EVs under EVIDA, which includes HEVs, PHEVs, BEVs and light electric vehicles. Lapsed into law on April 15, EVIDA now embodies the national policy framework on EV development.

CAMPI says that all EV-related policymaking should give regard to this and not diminish EVIDA’s potential.

EV adoption in the Philippines is in its early stage. According to CAMPI, it is not optimal to homogenize the EV requirements of the transport fleet as different users have varying considerations for EV adoption. For instance, the EV requirements and motivation for adoption of public utility vehicle operators significantly differ from that of private transport users.

Private vehicles accounted for approximately 94% of the total vehicle fleet (excluding trailers and motorcycles) in 2021. In terms of fleet size, CAMPI reckons that electrification of private transportation will substantially reduce fuel consumption and vehicle emissions. CAMPI is looking at the gradual electrification of the private vehicle segment with its members offering a whole range of OEM EVs.

“OEM EV technologies are backed up by years of research and development. It cannot be oversimplified by focusing on only one component of the EV drivetrain system”, Gutierrez said. He further added that “the performance of OEM EVs is measured in accordance with international standards.”

CAMPI has been promoting the adoption of all EV technologies since 2009 and participates in various government-industry initiatives on EVs. While there are many factors affecting the wide-spread adoption of EVs, the group is optimistic that EVIDA measures and the zero-percent tariff proposal puts the automotive industry in the right direction in terms of vehicle electrification. 

Photos from Dylan Afuang 

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