BYD Cars Philippines has thrown its support behind the Electric Vehicle Association of the Philippines' (EVAP) request to extend zero tariffs on electric vehicles (EVs) and their components through 2040.

"We support that," BYD Cars Philippines Executive Director Bob Palanca told BusinessWorld on the sidelines of an event last week.

Mr. Palanca was referring to EVAP's recent call to prolong the zero-tariff scheme, citing the government's push to bolster EV adoption in the country.

Under Executive Order No. 12, issued in 2023, import duties on certain EVs and their parts and components were cut to zero for five years, or until 2028. Tariffs for the segment previously ranged from 5% to 30%. An extension to 2040 would keep the zero rates in place 12 years beyond that scheduled expiry.

In 2024, the duty exemptions were expanded to cover e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles, quadricycles, hybrid electric vehicles (HEVs), plug-in hybrid electric vehicle (PHEV) jeepneys or buses, battery electric vehicles, HEV and PHEV cars and trucks, and completely knocked down EVs for all types of vehicles.

The government aims to bring the EV fleet to half of the national vehicle total by 2040 and to 60% by 2050, according to the Philippine Energy Plan — the same year EVAP is proposing as the new endpoint for tariff relief.

"Whatever can be provided by the government, we welcome, not only for our brand but for everyone (in the industry,)" Mr. Palanca said.

All BYD vehicles sold in the Philippines are currently imported from China and distributed through Ayala-controlled ACMobility Holdings, Inc., the brand's official distributor — an arrangement that makes import duty policy directly relevant to the brand's Philippine business.

Trade Undersecretary Ceferino S. Rodolfo has said the government will review EVAP's proposal, but noted that current policy is focused on encouraging domestic production. The Electric Vehicle Incentive Strategy seeks to provide four EV manufacturers with a P15-billion fiscal package each to produce four-wheeled EVs locally. The review's outcome will determine whether the zero-tariff window stretches to 2040 or lapses in 2028, even as the government's incentive programs remain geared toward domestic production.

Looking ahead, Mr. Palanca said demand in the Philippine automotive market is expected to soften toward the end of the year, as the weaker peso drives up prices of imported goods and weakens purchasing power.

"I see the market softening towards the end of the year," he said.

"However, we'll fight it out. We'll continue providing vehicles, campaigning for our brand, and making everyone experience BYD," Mr. Palanca added.

BYD's sales came in at 28,399 units at the end of August, already surpassing the 26,122 units it recorded over the full year in 2025.

Mr. Palanca noted that the Philippine EV market has grown more competitive.

"There are a lot of new players and legacy brands that also want to capture market share," he said.

"But we've surpassed last year's performance as early as August. So that's a sign that we're okay," Mr. Palanca added. — Beatriz Marie D. Cruz