Cheaper e-bikes! Government eyes zero import duties for two-wheeled EVs -- EVAP

Executive Order (E.O.) No. 12 has been instrumental in the tremendous price drops of four-wheeled electric vehicles (EV).

Signed by President Ferdinand Marcos Jr. on January 2023, the measure implements zero import duties for electric cars and their spare parts until 2028. This has put EVs like the Nissan LEAF and BYD Dolphin in price ranges that are more competitive with their non-EV counterparts.

However, E.O. 12 does not include two-wheeled EVs or e-bikes. At least, for now.

Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga told AutoFun Philippines that the government is looking into lifting duties for imported e-bikes to stimulate the adoption of battery-electric vehicles.

“For the moment, ang tinitignan na lang natin is amendment on E.O. 12, as mentioned by Secretary of Energy,” he said at the sidelines of the 11th Philippine Electric Vehicle Summit following a speech by Energy Secretary Raphael Lotilla.

[Translation: For the moment, what we’re looking at now is amendment on E.O. 12, as mentioned by Secretary Lotilla.]

The Energy Department said on August 2023 that over four in five EVs registered in the Philippines are e-scooters, e-bikes and e-trikes.

This figure doesn't include units that fall under the Land Transportation Office's (LTO) L1a, L1b and L2a classifications because these are not required to be registered.

Perks to going electric

Araga added that all fiscal incentives for EVs have already been indicated in the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), which provides timelines and targets for the local EV industry.

These include perks from the Department of Trade and Industry for government and corporate entities that wish to include EVs in their fleets, along with incentives under the Board of Industry’s 2020 Investment Priorities Plan.

Meanwhile, Republic Act 11697 or the Electric Vehicle Industry Development Act offers a bevy of non-fiscal incentives for battery EV and hybrid EV owners.

These include exemption from the Metro Manila number-coding scheme and discounted LTO registration fees until 2030.

Only new EVs by 2040

R.A. 11697 also sets a timeframe for when industrial and commercial companies, public transport operators and government agencies will be required to have fleets that are at least five percent EV.

The law aims to transition these sectors to become fully electric.

R.A. 11697 also mandates significant changes in infrastructure for EVs, including the construction of dedicated EV parking slots and charging stations in all new public and private establishments. Buildings that will be renovated must also comply with EV parking requirements.

Incentives will play a vital role in EV acceptance, especially considering the government’s goal of selling only brand-new EVs locally by 2040.

Do you think two-wheeled EVs would be more viable if the prices go down?

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