BYD Philippines backs zero-tariff EV import extension as market expands

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BYD backs EV tariff extension

Highlights

BYD Cars Philippines supports the Electric Vehicle Association's call to extend zero tariffs on EVs and components from 2028 through 2040.
The Philippine government is offering four EV manufacturers fiscal packages of P15 billion each to spur local four-wheeled EV production under the Electric Vehicle Incentive Strategy.
BYD posted 28,399 unit sales in the Philippines by August, surpassing 2025 full-year sales, even as a weaker peso may dampen broader auto demand.

Tariff proposal and policy timeline

As reported by BusinessWorld Online, BYD Cars Philippines supports the Electric Vehicle Association of the Philippines' request to extend zero tariffs on electric vehicles and their components through 2040, according to Executive Director Bob Palanca. He says the company welcomes any government support for the sector, not only for its own brand but for the wider industry.

Executive Order No. 12, issued in 2023, reduced import duties on certain EVs and related parts to zero for five years, or until 2028, from previous tariff rates of 5% to 30%. In 2024, the exemptions were widened to include e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, quadricycles, hybrid EVs, plug-in hybrid EV jeepneys or buses, battery electric vehicles, hybrid and plug-in hybrid cars and trucks, and completely knocked down EVs for all vehicle types.

The Philippine Energy Plan targets EVs at half of the country's vehicle fleet by 2040 and 60% by 2050. Trade Undersecretary Ceferino S. Rodolfo says the government will review EVAP's proposal, but he also notes that current policy is focused on encouraging domestic production.

Local production push and market competition

The Electric Vehicle Incentive Strategy seeks to grant four EV manufacturers fiscal packages of P15 billion each to produce four-wheeled EVs in the Philippines. That creates a policy balance between keeping imports affordable for consumers and building a domestic manufacturing base over time.

All BYD vehicles sold in the Philippines are currently imported from China through official distributor ACMobility Holdings, Inc., which is controlled by Ayala. Palanca says demand in the broader Philippine automotive market is expected to soften toward the end of the year as a weaker peso raises the cost of imported goods and weighs on purchasing power.

Even with that outlook, BYD says its sales momentum remains intact. The company posts 28,399 units by the end of August, exceeding the 26,122 units it sold in full-year 2025, while Palanca says the local EV market is becoming more competitive as new entrants and legacy brands pursue market share.

In our earlier article on BYD Malaysia’s local assembly plans, we covered the company’s decision to partner with Inokom Corporation for completely knocked-down (CKD) vehicle assembly in Kulim, Kedah. We noted that the move followed BYD’s decision not to proceed with a new plant in Tanjung Malim due to export-related requirements, while details on models and the production timeline were still pending.

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