Red tape a necessary evil? Philippine EV industry going through birth pains -- SuperCharged Motors Inc.

In spite of dedicated legislation and tax breaks, the Philippine electric vehicle (EV) industry is still going through some difficulties as the electric revolution rolls in.

SuperCharged Motors Inc. founder Victor Endriga told AutoFun Philippines that the passage of Republic Act (R.A.) 11697 or the “Electric Vehicle Industry Development Act” has actually made importing EVs more complicated.

“Before, when we imported the vans, we never had any problems with DENR (Department of Environment and Natural Resources) getting the Certificate of Non-Compliance, which was a requirement for us to get the excise-tax exemption,” he said in an exclusive interview.

As of press time, SuperCharged Motors is the official importer and distributor of the Chery Wanda, a fully electric, 21-seater van. It is also the gray importer of the Ice Cream mini EV.

Endriga said the release time for the company’s import batches got longer because of the additional paperwork.

“'Yung EVIDA, maraming regulations, pero it's part of the birthing pains,” he said.

[Translation: The EVIDA has many regulations, but it's part of the birthing pains.]

“In the next 12 months, even the chargers will be regulated na ng [by the] DTI (Department of Trade and Industry) for product standards,” he added. “But we're optimistic na [that] things will get better with the market improving.”

EV industry framework

The Philippines only recently hopped on the EV bandwagon when R.A. 11697 lapsed into law on April 2022.

Aside from providing a framework for the development of the local EV industry, the law offers non-fiscal incentives to EV owners until April 2030, ranging from number-coding exemptions to discounted vehicle-registration fees.

Endriga said R.A. 11697 was well-crafted, particularly in addressing the need for EV infrastructure.

“You'll see a lot of chargers opening up, so the range anxiety is slowly going away,” he said. “I also see a lot of chargers opening outside of Metro Manila. It's very good ‘yung [that] EVIDA to encourage establishments to open EV parking slots and EV chargers.”

R.A. 11697 mandates the construction of dedicated EV parking and charging stations in all new public and private establishments. Buildings that will be renovated must also comply with EV parking requirements.

Meanwhile, Endriga said SuperCharged Motors has partnered with EV charging firm Teison to provide home chargers in the face of greater demand.

EVs much cheaper

Meanwhile, Endriga hailed President Ferdinand Marcos Jr.’s executive order that removed duties on imported battery EVs and spare parts until 2028.

“It's very welcome news kasi [because] it was very prohibitive,” he said. “It's surprising that we want to encourage people to move to EVs, pero ‘yung taxes [but the taxes] is at 30 percent, where a regular internal-combustion car from China would only be taxed 5 percent.” 

The executive order, which was issued on January 2023, has led to a reduction in the list prices of EVs in the country that should hopefully stimulate demand.

“Well, unfortunately, nakatulong din sa amin ‘yung pagmahal ng gasolina [the increase in fuel prices helped us], so people are looking for alternatives,” he said.

Electric Vehicle Association of the Philippines president Edmund Araga told AutoFun Philippines on November 2022 that the government is also looking at offering more fiscal incentives to EV buyers.

Do you expect to see more EVs on the road in the next few years?