Local e-motorcycle assembly to start in June, stakeholders advocate for tax incentives
MANILA, Philippines — Stakeholders in the electric vehicle (EV) industry are once again urging the government to provide more incentives as they welcome news that the local assembly of electric motorcycles will begin mass production in June 2023.
The Department of Trade and Industry (DTI) recently released a report announcing the signing of an agreement on May 1 in the United States, which will initiate the manufacturing of e-motorcycles in the Philippines.
According to the report, Filipino-owned company Integrated Micro-Electronics (IMI) has entered into a cooperation agreement with American company Zero Motorcycles for the local assembly of e-motorbikes and the production of sub-assemblies for batteries and motors.
As stakeholders enthusiastically received the news of the upcoming local mass production of electric motorcycles, they also expressed hope that two- and three-wheelers would be included in the EV import tariff break before the scheduled review of Executive Order No. 12 in early 2023.
In a related development, prominent figures from the EV industry welcomed the report and called for the inclusion of e-motorbikes in the import tax break provided under EO 12.
Louie Montemar, Professor and Fellow for Education of Stratbase ADR Institute, emphasized the importance of including e-motorcycles in the executive issuance, citing EVs as an alternative mode of transportation in light of rising gasoline prices.
Dindo Manhit, President of Stratbase ADR Institute, stated that a review of the EO is necessary as the current version is deemed “unfair” because it excludes electric motorcycles.
Senator Sherwin Gatchalian reiterated the need to promote the use of EVs by enacting the Electric Vehicle Industry Development Act (EVIDA) as a solution to the escalating oil prices.
According to an update from the Presidential Communications Office, the collaboration between IMI and Zero Motorcycles amounts to $65 million, which will support the country’s transportation electrification.
The deal is expected to create job opportunities for nearly 200 workers involved in the assembly line, manufacturing, packing, and shipping of 18,000 EVs annually.