By Victor V. Saulon
Sub-Editor
THE Electric Vehicle Association of the Philippines (EVAP) expects sales of electric jeepneys to hit 500 units this year, up from the 200 in 2017, with the group expecting a “tipping point” for the industry.
Rommel T. Juan, EVAP president, said the industry’s optimism is largely brought about by the public utility vehicle (PUV) modernization, which is expected to boost sales of the four-wheel electric vehicles after a slow start in recent years.
“Maybe by the end of the year, we’ll be able to release about 500 units,” he said in an interview. “There were only few units released last year, maybe less than 200.”
EVAP has 57 active members, most of whom are involved in local production, assembly, supply and distribution of electric vehicles and parts.
“This year is the tipping point, with the PUV modernization and the deployment of the DoE (Department of Energy) electric tricycles,” he said.
The Department of Transportation’s PUV modernization program has a target to upgrade around 200,000 public utility jeepneys in the next six years, about 10% of which will be electric jeepneys. To support the scheme, the Department of Trade and Industry and the Board of Investments are putting in place an Eco-PUV program to provide incentives to both the electric vehicle platform suppliers and body builders.
The DoE has committed to deploy around 1,600 to 1,700 units to the local governments of Marawi, Valenzuela, Muntinlupa, Las Piñas and Pateros. This will come from the 3,000 units that the government contracted with Japan’s Uzushio Electric Co. Ltd. and its local unit Bemac Electric Transportation Philippines, Inc. The rest of the units have not been committed but the DoE is considering a number of applications.
“In the automotive industry it has to be seen first. When you see the vehicles, that is when you would want to buy. The more vehicles we have on the road, the more demand will happen,” he said.
Mr. Juan said since the country started manufacturing electric-vehicles, a total of 5,000 have been produced by local vehicle makers, most of which are electric tricycles. He said about 15,000 electric motorcycles are imported each year on average.
He said the PUV modernization resulted in inquiries from dealers, who are fast-tracking the manufacture of electric jeepneys.
He said many members of EVAP are currently enjoying the income tax holiday being offered by the government, but the association continues to ask for tax- and duty-free importation of electric vehicles.
“Six, seven years that we’ve been pushing for it,” he said.
He said the 30% tariff on EVs is what the association is asking to be removed plus the import taxes and duties for vehicle parts such as the motor, controller, charger and batteries. If these incentives are given, he said EVs would be more competitive.
For instance, the cost of the Outlander model of Mitsubishi Motors Philippines Corp. will go down to P2.5 million from the P3.4 million with the existing taxes, he said.
“In other countries, [the electric vehicle industry] is a highly subsidized industry and that is really the price you pay if you want to improve the environment and to promote low carbon initiatives of electric vehicles,” he said.
