DTI hoping incentives for EV makers ready soon

THE Department of Trade and Industry (DTI) said it is hoping the Electric Vehicle Incentives Strategy (EVIS) program is approved in the next three months to accelerate the process of attracting investment in domestic electric vehicle (EV) manufacturing.

“We are hoping to issue the executive order and the implementing rules and regulations within the year — hopefully in three months,” Trade Secretary Ma. Cristina A. Roque told BusinessWorld.

“Since EVIS is primarily geared towards the domestic market, the Board of Investments (BoI) will be the focal agency for attracting participants,” she added.

On Monday, the Department of Finance (DoF) said Mitsubishi Motors Corp. (MMC) is planning to establish a dedicated hybrid electric vehicle (HEV) manufacturing facility through Mitsubishi Motors Philippines Corp. at its plant in Santa Rosa, Laguna.

“This is a landmark investment that will redefine the future of our automotive industry. And the even more exciting possibility is that we could be an exporter of hybrid cars,” Finance Secretary Frederick D. Go said.

The announcement follows a meeting between MMC President and Chief Executive Officer Takao Kato with Ferdinand R. Marcos, Jr. and Mr. Go at Malacañang Palace today.

According to the DoF, the dedicated HEV facility will help accelerate “the localization of advanced hybrid vehicle production, supporting the country’s goals for cleaner transport and higher-value manufacturing.”

“MMC is also looking at the possibility of exporting products from its Laguna plant,” it said.

“This kind of investment becomes more valuable during times of uncertainty, as it will create more job opportunities, while propelling the nation into a more sustainable and technological future,” it added.

Once realized, HEV manufacturing is expected to help the country reduce its oil import dependence and cut urban emissions.

Ms. Roque said that the BoI is working with the Fiscal Incentives Review Board to finalize the details of the EVIS.

“This will provide incentives for in-country value-adding and further hasten the development of the EV ecosystem as it complements other incentives already in place through the Electric Vehicle Industry Development Act.

These include number coding exemptions, tax exemptions, reduced registration fees, and import duty exemptions. — Justine Irish D. Tabile