EV in the Philippines : State and Initiatives What to expect?

.Global and ASEAN EV Trends .Why EV in the Philippines? .EV Local Updates .Demand Projections .Moving Philippine EV Forward Global EV Trends ASEAN E-Vehicle Stock ASEAN Targets and Projections ASEAN Charging Infrastructure Why EV’s in the Phil? Energy Security Why EV’s in the Phil ? GHG Mitigation

GHG Emission Factor (g/km) 250.00

200.00

150.00

100.00

50.00

0.00

BEV BEV BEV BEV BEV BEV BEV BEV BEV BEV

ICEV ICEV ICEV ICEV ICEV ICEV ICEV ICEV ICEV ICEV

PHEV PHEV PHEV PHEV PHEV PHEV PHEV PHEV PHEV PHEV MC SC Car C Car F Car MPV Pick up C SUV M SUV F SUV Van

Hydro Solar Wind Vehicle Use Fuel Prod Geothermal Biomass 7% 1% 1% 19% 4%

Gas 28% 17.1 USD per Ton CO2e

Coal Diesel 38% 2%

Geothermal Coal Diesel Gas Biomass Hydro Solar Wind Why EV’s in the Phil ? Health Benefits

Baseline Jeepneys Electric Jeepneys Annual Health Benefits in Millions Php Region Scenario CAR NCR Region 1 Region 2 Region 3 Region 5 Total 4A

Scenario 2 E- -0.26 17,170.77 -12.96 -0.05 240.11 1,430.18 0.00 18,827.79 Jeepneys Why EV’s in the Phil ? EV Simplicity means New Opportunities Why Electric Vehicles in the Philippines?

Moving Parts 18+ vs 2000+ . We can build it!! . We have Nickel and Cobalt Global Nickel Reserves United States 0% 4% Australia Brazil 6% 5% 7% 18% Canada China Colombia Global Cobalt Reserves United States 6% 11% Australia Cuba 1% Finland 0% Canada 4% 5% 3% Guatemala 4% 9% China 2% 20% 1% 18% 4% 9% Indonesia 0% Congo (Kinshasa) 3% Madagascar 2% 1% Cuba 7% 0% New Caledonia Madagascar Philippines Morocco 2% Russia Papua New Guinea South Africa Philippines Other Countries 49% Russia South Africa Other Countries Phil EV Industry

. Philippines - Eco-PUV Program - Some Local E-Jeepney and E- Trike Companies - Exploring possibility for a local battery industry . Thailand is leading the way . Indonesia is focusing on Battery Production . Vietnam established its own automotive / EV company Local EV Updates : Vehicle Stock and Models

As of March 2019 . E-Trikes – 1,511 units, 16 models . E-Jeepneys – 252 Units, 21 models . More than 50 LEV Models

Local EV Updates : Vehicle Stock and Models

Locally Available

Nissan Leaf BYD E6

DongFeng ER30 Hyundai Ioniq EV Hyundai Kona EV Local EV Updates : Vehicle Stock and Models

Locally Available Plug-in Hybrid Vehicles Hyundai Ioniq PHEV PHEV

Jaguar Range Rover Sport P400E BYD Qin PHEV BYD Tang PHEV LTO Administrative Order

ELECTRIC VEHICLE GUIDELINES AND REGULATIONS

• Classifications • Operation • Recording and Registration

Vehicle Parts and Standards Development

PUV Modernization Program

17 EV Cost in the Philippines

Vehicle Variant PHEV BEV Mini-Compact 1.56-1.93 1.95-2.41 Subcompact Sedan 1.47-1.91 1.84-2.28 Compact Sedan 1.54-1.91 1.81-2.28 Full-size Sedan 1.42-1.75 1.69-2.09 MPV 1.54-1.91 1.84-2.28 Pick-up 1.54-1.91 1.84-2.28 / Compact SUV 1.42-1.71 1.69-2.09 Mid size SUV 1.42-1.71 1.69-2.09 Full-size SUV 1.56-1.93 1.95-2.41 Van 1.47-1.91 1.84-2.28

Compact Sedan Life Cycle Cost 4,000,000

3,000,000

2,000,000

1,000,000

- 2019 BEV 2025 BEV 2030 BEV 2019 PHEV 2025 PHEV 2030 PHEV 2019 ICEV 2025 ICEV 2030 ICEV Vehicle Cost Energy Cost Maintenance cost Retail Cost

Sub- Compact Car 2,500,000 3,000,000 2,500,000 2,000,000 2,000,000 1,500,000 1,500,000

1,000,000 1,000,000 500,000 500,000 - -

ICEV Euro 4 and 6 PHEV BEV

2032 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2033 2034 2035

2024 2019 2020 2021 2022 2023 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

ICEV Euro 4 and 6 PHEV BEV

Mid-size SUV Full-size SUV 4,500,000 9,000,000 4,000,000 8,000,000 3,500,000 7,000,000 3,000,000 6,000,000 2,500,000 5,000,000 2,000,000 4,000,000 1,500,000 3,000,000 1,000,000 2,000,000 500,000 1,000,000

- -

2024 2019 2020 2021 2022 2023 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

2025 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

ICEV Euro 4 ICEV Euro 6 PHEV BEV ICEV Euro 4 ICEV Euro 6 PHEV BEV EV Potential Demand in the Philippines

Metro Manila Alone Tourism Industry

1800000 1580926 1600000 1316717 1400000 1138690 1200000 1000000 790245 850509 702597 752836 800000 600000 400000 2 wheeler growth 200000 0 2012 2013 2014 2015 2016 2017 2018 Government Vehicles Delivery Sector Growth Household Uptake Projections

Baseline Scenario

With Tax Incentive and Infrastructure Development Will there be demand? Other Sectors with Regulations

. Approximately 45,000 Annual Sales by 2030 . Approximately 300,000 EVs in vehicle stock by 2030 . Initial Demand - commercial, public transport and government vehicles . Eventual Demand - Households

Senate Bill 1382, HB 4075, HB 4391

ELECTRIC VEHICLES AND CHARGING STATIONS ACT

• Role of Government Agencies • Demand Generation and Industry Development • Incentives

Bringing Philippine EV Forward Bringing Philippine EV Forward

• Minimum 5% for logistic companies, Food delivery companies, Tour Corporate agencies, Accommodation / hotels, Utility companies Fleet • Preferential terms ( i.e. Age limit, Fleet Size) • Green Jobs Act eligibility prorated based on EV fleet share

• Minimum 5% for bus, taxi and TNVS with longer age limit Public • 50% of premium taxis with longer age limit Transport • All CBDs for Jeepneys • Minimum percentage for e-trikes to be determined by LGU

Government • 10% of all annual vehicle purchase Vehicles • Increasing percentage in the future

• Toll fee exemption Fringe • Number coding Benefits • Exclusively allotted parking lots • Reduced annual vehicle registration rates Bringing Philippine EV Forward

Importation • To cover both BEV and PHEV Tariff • Minimum battery range should be explored in the future Exemption

Excise Tax • To cover PHEV since BEV no longer have excise taxes Exemption

Value Added • Exemption to be applicable to required adoption as indicated in the demand generation Tax Reduction • 50% reduction for all other purchases / Exemption • Until 2025

EV Eco-PUV • Similar to program but to focus on e-jeepneys and e-buses Programme • Additional incentives for each locally sourced major part Bringing Philippine EV Forward

EV Charging • Short term to focus initially in “EV Lead Areas” and will be voluntary Infrastructure • Medium term to include mandated installations in “EV Lead Areas” Development Plan • Long term to expand mandated adoption through out the country EV Charging • To cover residential condominiums, office buildings, communal buildings, Infrastructure commercial buildings, commercial parking lots and tolled highways Regulations • Corporate tax incentives and/or CSR program Charging • Importation tariff free importation of 20 kW and higher units equipment tariff • Value added tax exemption and tax exemptions Charging standards • Market based and ASEAN considerations protocols and • Standard operating procedures for private installations installation guidelines • Streamlining of LGU permitting processes Reduced Power • Development of charging rate setting regulations Exemption from Rates and Charging • Exemption from payment of subsidy shares ( approx. 75 centavos ) Rates Setting

Demonstration • Multi-stakeholder with government as a key player • Demonstration of various charging system business models Programs • To provide proof of concept of planned regulations Bringing Philippine EV Forward

EV Assembly and • Eco-PUV Program Parts Production • Competitive program vis a vis ASEAN countries Incentive Program • Coupled with local demand generation

Local EV Industry • Soft loans to support continuous production of Local EVs Fund

Vehicle • Standardized vehicle classifications used by LTO, BOC and BPS to facilitate Classification registration of the EVs Harmonization • Work is on-going

Specific Tariff Code • Separate tariff code to facilitate exemptions for EVs for EVs • In place already as per tariff commission

EV Standards • Rationalize and plan-out phased adoption Testing and • Local capability building program to implement standards Capability Building • Set energy economy , range and durability thresholds Bringing Philippine EV Forward

Battery Local • Plan out and implement road map for the eventual production of the EV Manufacturing batteries capitalizing on the cobalt and nickel reserves of the country Roadmap

Transport and Auto • Plan out and implement road map to develop the country as an Informatics outsourcing hub for transport and auto informatics capitalizing on the vast Industry Roadmap IT human resource of the country

EV Human • Development and introduction of training and certification programs to Resource ensure adequate and competent workforce to support EV and parts Development design, production, maintenance and operation.

Local EV Research • Develop and support R and D road map for the local EV industry and Development • Bid contract based Program • Performance target based

Information and • IEC for all sectors concerned Education • Pilot programs in “EV lead cities” Campaigns