Hybrid and electric vehicles are picking up in the country. Compared to five years ago, sales of EVs and electrified cars are much higher than before, but the current administration would like to make those numbers higher.
As it stands, it’s only electric vehicles that are exempt from tariffs. However, a move by President Ferdinand Marcos Jr. could potentially shake up the industry. That’s because the President recently approved the inclusion of hybrids and plug-in hybrids for tariff exemptions.
OTHER STORIES YOU MIGHT HAVE MISSED:
DOTr looking into electric ferries, Manila Bay–Pasig River–Laguna Lake ferry route
Here’s your first sneak peek at the next-gen BMW M5
It’s a major amendment to Executive Order 12 (EO 12), officially titled Temporarily Modifying The Rates of Import Duty on Electric Vehicles, Parts, and Components Under Section 1611 of Republic Act No. 10863, Otherwise Known As The ‘Customs Modernization Act’.” With that, the 30 percent import duty taxes on hybrids and plug-in hybrids will no longer be applied.
The move should make hybrids and plug-in hybrids a more attractive proposition to car buyers. The thing is, the rule doesn’t just apply to private cars. Electrified jeeps, buses, and trucks are also covered. Also included are e-bikes and e-motorcycles. The catch? Mild hybrids aren’t covered as the rule states that the vehicle must be able to move under battery power.
Does this mean all hybrid and plug-in hybrid vehicles will be 30 percent less expensive? Let’s not jump the gun yet, but do expect major price adjustments from automakers in the coming months. In the meantime, we’ll keep track of any price changes from the car companies. It's worth keeping in mind that EO 12 will only be in effect until 2028, so now might be a good time to consider that hybrid vehicle.
