DTI courts Chinese EV firms for PH expansion
The Department of Trade and Industry (DTI) seeks to attract more Chinese electric vehicle (EV) manufacturers, particularly those specializing in compact vehicles and electrified two-wheelers.
In an interview on Monday, Trade Secretary Cristina Roque said she had met with at least four EV manufacturers on the sidelines of her trip to Suzhou, China, for the Asia-Pacific Economic Cooperation Ministers Responsible for Trade meeting.
“I have spoken to many companies that would like to bring in the smaller EVs like the motorcycles that can be used as tricycles and the compacts that can be used for Grab or Lalamove, and for provinces where buses or jeepneys are not allowed,” Roque said. “We will have many options.”
Among the companies Roque met was Jiangsu Nwow Technology, the e-bike manufacturer that already has a footprint in the Philippines.
EV loans
She also met with Shanghai Launch Automotive Technology, which already manufactures vehicles in the Philippines through a partnership with Francisco Motors.
This investment push comes as the DTI ramps up efforts to electrify public transport even ahead of the rollout of the government’s Electric Vehicle Incentive Strategy, which aims to encourage EV firms to manufacture vehicles locally.
Alongside these investment promotion efforts, the DTI on Monday awarded P30 million worth of loans to 10 transport operators to help them purchase up to two EV units each.
Under the newly launched e-transport loan program of Small Business Corp., licensed small operators and drivers can borrow up to P1.5 million per vehicle, payable over five years at an annual interest rate of 6.7 percent.
Roque said several other transport operators had already signified interest in the program, pushing it close to exhausting its P2-billion allocation.
For instance, the DTI has already discussed the loan facility with motorcycle ride-hailing platform Angkas.
As such, Roque said the DTI was open to replenishing the fund amid rising EV demand, which has accelerated since March following the spike in fuel prices triggered by the conflict in the oil-rich Middle East.
The DTI is also developing a memorandum of understanding with the Philippine Guarantee Corp., Social Security System and Pag-Ibig Fund to help transport operators access bank financing for EV purchases.
“We created this loan program because we want to modernize, but we also need to make it affordable, accessible, and we need to make it happen now,” Roque said, noting that EVs can help operators save 33 percent to 80 percent in fuel costs.
Among the initial loan recipients were Arca Guadalupe Market!-Market! Transport Cooperative, Pm Jeepney Drivers & Operators Services Inc., Daanghari Modern Jeepney Transport Cooperative, AFP-PNP Housing Taguig Guadalupe Transport Cooperative and Zapote, Imus, Dasma, GMA, Palapala, Paliparan Transport Cooperative.
