DTI to focus on e-mobility project in 5 key cities until 2027

MANILA: The Department of Trade and Industry (DTI) is working with the United Nations Industrial Development Organization (UNIDO) to deploy electric vehicles (EV) and install charging infrastructure in five key cities in the Philippines until 2027.

According to DTI Undersecretary Rafaelita Aldaba, this program is part of the $3.8-million DTI-UNIDO E-mobility Project.

The cities that will benefit from the e-mobility project are Baguio City, Davao City, General Santos, Clark Freeport, and Subic Freeport.

“The mayors of these different cities have already signified their commitment to be our partners in implementing this particular project,” Usec. Aldaba said.

The partnership aims to provide technical assistance to national and local government units to develop the ideal EV ecosystem for them.

According to Usec. Aldaba, the Electric Vehicle Industry Development Act (EVIDA) helps the government in accelerating the adoption of electric mobility in the Philippines, including local production of EVs and parts, manufacturing of EV batteries and installation of charging stations, and usage of EVs across the country.

The DTI will spearhead the creation of the Electric Vehicle Incentive Strategy, which according to Usec. Aldaba, will be similar to the Comprehensive Automotive Resurgence Strategy (CARS) Program.

Since 2015, the CARS Program has been giving fiscal incentives to car manufacturers that will commit to deliver at least 200,000 motor vehicle units with the majority of the parts being locally manufactured.

The $570-million subsidy program seeks to expand the local vehicle assembly and parts production industry to create jobs, attract investments, and make the Philippines a regional automotive manufacturing hub.

Toyota and Mitsubishi have already applied for the tax benefits under the CARS Program. Toyota has committed to locally produce 200,000 units, while Mitsubishi will assemble 230,000 units.

The two Japanese automakers have invested P9.26 billion under the program.

The DTI hopes that the EV industry will also be able to achieve similar gains in investments, jobs, and industry development as the CARS Program.

“We’re really serious in terms of building the EV industry in the country,” Usec. Aldaba added. “We're lagging behind. We lag behind in terms of the ICE (internal combustion engine) but this time around, we really want this right.”

Screenshot from SGV Tax Symposium

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