BYD Cars Philippines said it supports the Electric Vehicle Association of the Philippines’ (EVAP) request to extend zero tariffs for electric vehicles (EVs) and their components through 2040.
“We support that,” BYD Cars Philippines Executive Director Bob Palanca told BusinessWorld on the sidelines of an event last week.
Mr. Palanca was referring to EVAP’s recent call for the extended zero-tariff scheme, citing the government’s push to bolster EV adoption.
Executive Order No. 12, issued in 2023, cut import duties on certain EVs and their parts and components to zero for five years, or until 2028. Previously, tariffs for the segment ranged from 5% to 30%.
In 2024, the duty exemptions were expanded to cover e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, quadricycles, hybrid EVs (HEVs), plug-in hybrid EV (PHEV) jeepneys or buses, battery electric vehicles, HEV and PHEV cars and trucks, and completely knocked down EVs for all types of vehicles.
The government hopes to bring the EV fleet to half of the nation vehicle total by 2040 and to 60% by 2050, according to the Philippine Energy Plan.
“Whatever can be provided by the government, we welcome, not only for our brand but for everyone (in the industry,)” Mr. Palanca said.
All BYD vehicles are currently imported from China and sold in the Philippines through Ayala-controlled ACMobility Holdings, Inc., its official distributor.
Trade Undersecretary Ceferino S. Rodolfo has said that the government will review EVAP’s proposal, but noted that current policy is focused on encouraging domestic production.
The Electric Vehicle Incentive Strategy seeks to provide four EV manufactures with a P15-billion fiscal package each to produce four-wheeled EVs here.
Towards the end of the year, demand in the Philippine automotive market is expected to soften as the weaker peso drives up prices of imported goods and weakens purchasing power, Mr. Palanca said.
“I see the market softening towards the end of the year,” he said.
“However, we’ll fight it out. We’ll continue providing vehicles, campaigning for our brand, and making everyone experience BYD,” Mr. Palanca added.
BYD sales came in at 28,399 units at the end of August, against 26,122 units over the full year in 2025.
Mr. Palanca noted that the Philippine EV market has grown more competitive.
“There are a lot of new players and legacy brands that also want to capture market share,” he said.
“But we’ve surpassed last year’s performance as early as August. So that’s a sign that we’re okay,” Mr. Palanca added. — Beatriz Marie D. Cruz