₱3-billion subsidy package for EV manufacturing sector submitted to Malacañang

An executive order granting a ₱3-billion subsidy package for the electric vehicle manufacturing sector has been submitted to Malacañang and is currently awaiting approval by President Duterte.

Trade and Industry Undersecretary Rafaelita Aldaba announced at the “Open for Business” forum organized by the Australia Philippines Business Council that this subsidy package forms part of the incentives being made available to Eco-PUV manufacturers for both domestic and export markets.

Under the EO, a ₱3-billion subsidy will be granted through tax credits to manufacturers of Euro 4 standard vehicles and electric public utility vehicles.

Under the new CREATE Law, manufacturers may take advantage of incentives, such as the corporate income tax holiday and special corporate income tax rate, as well as an enhanced deduction component for a total of 17 years.

The country’s EV ecosystem is currently composed of 54 manufacturers and importers, 19 charging stations, and 11 parts manufacturers.

In terms of industry focus, the Philippines is leveraging its strength not only in EV assembly but also in auto electronics engineering services, outsourcing, and EV battery charging energy storage systems and recycling.

The Philippines is also aiming to position itself as a global manufacturing hub for lithium-ion batteries, given the rich nickel and cobalt resources in the country that can be used as cathode materials.

Currently, we are number six in terms of nickel reserves in the world and number two in nickel production.

The DTI projects a total of 6.6 million electric vehicles by 2030.

SOURCE: The Manila Bulletin