Ambiguous no more: DOE gives NEVs 6 classifications

More than two weeks ago, the Department of Energy released the revised circular on the definition of electric vehicles, among other amendments (Department Circular 2025-09-0015). The revised circular took effect starting Sept. 20, and is intended to provide greater clarity for consumers, simplify enforcement for authorities, and streamline processes for vehicle distributors, ultimately fostering a more robust and organized electric mobility sector in the country.

Prior to this circular, the classification of EVs was limited, which led to ambiguities as new types of EVs entered the market. The new guidelines expand the categories from four to six, providing a more comprehensive framework. These six categories are: Battery electric vehicles (BEVs); hybrid electric vehicles (HEVs); plug-in hybrid electric vehicles (PHEVs); light electric vehicles (LEVs); fuel-cell electric vehicles (FCEVs); and range-extended electric vehicles (REEVs). The previous categories included only BEVs, HEVs, LEVs and PHEVs.

This expanded classification system is a critical step in formally recognizing the diverse range of EV technologies available to Filipino consumers.

Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga said that he welcomes the amendment of definition of EVs, as these are “necessary to correct such definitions in more detailed information as far as EV functionality is concerned.”

Araga said, “With this amendment, consumers will be more aware of different EVs that are now available in the market. What I appreciate about this amendment is that it gives emphasis on road motor vehicle classification that has to be aligned with the Department of Transportation-Land Transportation Office categories under AO 039-2021, which is up to now suspended by the LTO (note: Araga was quoted here in an interview two weeks ago). Asked for an update yesterday, Araga said: “(The suspension) has to be lifted as it is not aligned with the direction of Crevi and that amendment done by DOE should be implemented. We haven’t heard from the LTO since the publication of the amendment.”

This author tried to reach the LTO but no reply as of this writing.

Araga added, “we need the alignment of implementation from all government departments involved in the Crevi (Comprehensive Roadmap for the Electric Vehicle Industry) to accelerate the growth of the EV sector.”

Araga also stressed that it would be essential to identify the right EVs and its limitations to make road users and commuters be safe at all times.

The specific categories help consumers better understand the capabilities and features of different NEVs, enabling them to choose a vehicle that best suits their needs and lifestyle. A clear classification is directly linked to the fiscal and non-fiscal incentives provided under the Electric Vehicle Industry Development Act (Evida). Buyers can more easily determine the specific benefits they are entitled to, such as tax exemptions, discounts on registration fees, and exemption from number coding schemes.

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For law enforcers, the implementation of regulations gets simplified. The harmonized and detailed classifications make it easier for law enforcement agencies to identify different types of NEVs on the road. This is crucial for the correct and efficient implementation of traffic rules and the various incentives under Evida. Also, a standardized classification system aids in the accurate collection of data on the number and types of EVs on Philippine roads, which is essential for infrastructure planning and policy development.

For car distributors and the automotive industry in general, regulatory burdens are reduced. The circular is intended to streamline the process for car manufacturers, importers, and distributors to have their EV models officially recognized by the government. Clearer guidelines can lead to faster processing of applications. A well-defined regulatory framework also provides a more stable and predictable market. This encourages investments from car distributors and manufacturers, as it reduces uncertainties about how their products will be classified and what incentives will apply. This, in turn, is expected to lead to a wider variety of EV models being introduced to the Philippine market.

Here’s the amended section 4, pertaining to the expanded definition of NEVs:

• Battery EVs (BEVs) are those EVs with only a traction battery as power source for vehicle propulsion. For the purpose of this DC (department circular), pure electric vehicles (PEVs) shall also be defined as BEVs;
• Hybrid EVs (HEVs) are those EVs with both a RESS (rechargeable energy storage system) and a fueled power source of propulsion that has tailpipe emissions: Provided that an HEV must be able to propel itself from a stationary condition using solely an electric motor. For the purpose of this DC, non-externally chargeable HEVs or non-off-vehicle chargeable HEVs shall be defined as HEVs;
• Light EVs (LEVs) are those EVs used in micro mobility that provide alternative modes of transportation, which include electric scooters, electric bicycles, electric personal transport, and other similar vehicles weighing less than 50kg;
• Plug-in Hybrid E s (PHEVs) are those HEVs with a RESS that can be charged from an external energy source that has tailpipe emissions. For the purpose of this DC, externally chargeable HEVs or off-vehicle-chargeable HEVs shall also be defined as PHEVs;
• Range Extender/d EVs (REEVs) are those whose HEVs are propelled by an electric motor only with a fueled power source that is solely used for charging the RESS of the vehicle to extend the driving range by generating electricity to recharge the RESS. For the purpose of this DC, REEVs shall be understood as either series HEVs or series PHEVs;
• Fuel Cell EVs (FCEVs) are those EVs with no tailpipe emissions that use a fuel cell to generate electricity to power their electric motor for propulsion.

In essence, the DOE’s new circular serves as a foundational policy to organize the burgeoning EV landscape. By ensuring that all stakeholders are on the same page regarding vehicle classifications, the government aims to create a more conducive environment for the growth of sustainable transportation in the country.