Malacañang has officially signed Executive Order No. 121 providing for the framework for the Electric Vehicle Incentive Strategy Program or EVIS.
The EVIS provides a time-bound, targeted, performance-based, and transparent fiscal and non-fiscal support to attract EV and EV parts manufacturing, and set local production targets to be achieved within eight years from the promulgation of the program.
This hopes to narrow the cost gap between Electric Vehicles (EVs) and traditional motor vehicles.
Under the EVIS, corporate applicants may enroll up to two EV models (hybrids are included). Among the criteria set by the government include: investment in the manufacture or assembly of EVs, and their parts and components; planned total production volume; expected economic impact such as job generation; compliance with standards such as the Philippine National Standards, UNR-100 and/or UNR-136; and proposed aftersales support services including battery disposal or recycling, and spare parts support for at least 10 years.
Vehicles who are successfully enrolled in the program enjoy fixed investment support (FIS) provided a company undertakes new investments in the manufacture or assembly of EVs, including their parts and components. They must also have a minimum of P 5-billion in investment or its equivalent and must sell the vehicle within three years upon the issuance of a Certificate of Registration.
The FIS covers the capital expenditure used for tooling, equipment research, and development cost of 40 percent in the case of EVs and 30 percent for hybrids, plug-in hybrids, and fuel cell EVs. The same FIS is enjoyed when it comes to components and parts—40 percent in BEVs and 30 percent for HEVs, PHEVs, and FCEVs.
A Production Volume Incentive (PVI) is also given provided the carmaker be able to produce a minimum of 10,000 units. This amounts to 12 percent of its ex-factory unit price provided it doesn’t exceed P 200,000 per unit.
The government will support the program under its General Appropriations Act up to a limit of P 60-billion. Each qualified enrolled model will receive not more than P 15-billion in support.
For its part, Mitsubishi Motors Philippines has voiced support for this development. MMPC Chairman Noriaki Hirakata said, “Mitsubishi Motors Philippines Corporation welcomes the issuance of the Electric Vehicle Incentive Strategy (EVIS) Executive Order, which marks an important milestone in advancing vehicle electrification and strengthening the automotive industry in the Philippines. Backed by Mitsubishi Motors Corporation’s P 7-billion investment commitment, we are ready to support the government’s vision through the local production of hybrid electric vehicles, further enhancing the country’s manufacturing capabilities and competitiveness.”
For BEV only or including HEV and PHEV?
ReplyDelete6th paragraph. It's not even that long of an article.
Deletepuro salita lang naman MMPC, kung mag CKD sila ng xpander baka 2030 pa yan makagawa
ReplyDeleteMore like Toyta Mitsubishi incentive program.
ReplyDeleteThey should just make it like indonesia/Malaysia
All imported vehicle will be tax 80% and local production is 0%
They will be forced to build plants in PH and economy will be boosted
IMO, I don't think it is a good option considering the high operating cost and lower productivity here in the Philippines (fuel, electricity plus heavy traffic, etc).
DeleteJust look how the Mirage became more expensive yet stripped with necessary features when it is being manufactured here.
Building, staffing, and tooling up any factory will take years.
DeleteWhat that will accomplish here will scare away a lot of brands (reducing choices), hike prices for consumers for cars from companies that choose to continue to just import and only benefit companies that already have local production. And while the factories of any brands that choose to build are still under construction, the local manufacturers (Toyota, MMPC, etc.) will take advantage of the increased price of imported cars by selling their locally made cars just a little cheaper but still more expensive than before.
An initiative like that, if implemented here, needs to take decades and in phases. It's not a bad idea, but we don't have the continuity of governance that allows other countries to more easily implement stuff like that.
What's up with all the Debbie Downers here? Come on guys, be more positive and optimistic!
Delete