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February 25, 2023

BYD May Enter The Philippines As A Car Manufacturer


The Philippines is courting for a new carmaker to setup shop locally. According to Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo the country along with Vietnam and Indonesia are competing to secure a second EV assembly plant for China’s BYD.

In an interview with Bloomberg (subscription required) Rodolfo said that the Chinese auto giant and largest New Energy Vehicle (NEV) brand in terms of volume, is in “advanced stage of discussions” with the Philippines. In fact, BYD representatives scoured the Philippines for possible factory sites during a visit late last year and the company may decide on the site during the second quarter, said Rodolfo, who also heads the Board of Investments (BOI).

BYD, which is already set to build its first EV production facility in Southeast Asia in Thailand, is still exploring whether the new factory will be a full-blown assembly plant or a final-assembly facility with car parts shipped in from overseas.

The Philippine government is offering tax breaks and other incentives under the Electric Vehicle Industry Development Act or EVIDA.

Meanwhile, talks between BYD and Indonesia over a potential investment in an EV factory in the country are also ongoing. The Indonesian government is offering a slew of tax holidays, incentives, and access to battery raw materials to convince the carmaker to set up there rather than expanding in a neighboring country like Thailand.

Southeast Asian nations are racing to attract investments in EVs as global carmakers pivot away from the combustion engine, a transition that China has been dominating. Great Wall Motor Co. has already set up a production line in Thailand, while nickel-rich Indonesia has drawn interest from both BYD and Tesla.

Indonesia and the Philippines, which together account for almost half the world’s nickel reserves, are a good fit for electric-car and makers of batteries where the metal is a key component. Rodolfo said BYD, which uses lithium iron phosphate in its EV batteries, is considering the Philippines for its growth potential.

The Philippines has previously lost out on investment opportunities to its neighbors given its power rates are among the costliest in the region. But it is positioning as a hub for sustainable manufacturing facilities. The country aims to increase the share of renewable energy to half of its electricity mix from around 30 percent currently by 2040.

Chinese battery making giant Contemporary Amperex Technology Co., or CATL, is also in talks with Philippine government officials to invest in a plant to process nickel for electric car batteries, along with its subsidiary Brunp.

13 comments:

  1. Sana meron pang pag-asa na bumaba ang electricty rates ng Phil.

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    1. Try u mag partly solar poeer sa house u, affordable na now a days

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    2. Ang problema ng EV's dito sa pinas kunting ulan baha kaagad.

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    3. U are correct problema sa Pinas laging flood problema..kaya yun mga EV sure hindi uubra kundi waterproof yun mg elec motor pati battery n computer..

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    4. The article is talking about manufacturing EV's and selling it locally and exporting it as well. What does that have to do with driving an EV in flooded streets? Oh, Even smartphones now are water resistant. Think about it before commenting further.

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    5. Pag emanufacture dito e di ebebenta din dito. Its in the News last year, in florida and south korea during the flood an advice has been sent out to not touched/moved a flooded EV's vehicle thats the connection sa always baha sa pinas.

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    6. Chinese EVs are flood resistant
      There are Tiktok videos of a Wuling Mini EV on a flooded road in China and the car easily survived

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    7. And do you believe those tiktok promotional video??? How pity...

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    8. Kakatawa. tiktok ang source hahaha

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  2. The Phils will likely lose out again because geopolitics will come in. Right now, Macoy is cozying up to the US despite saying he has independent foreign policy skin. China already showed it's displeasure by gunning a laser light on our coast guard. So good luck on attracting investments from China. Indonesia will get it unless PM Phuc will go to China again to declare their communist alliance, again.

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    Replies
    1. Galing ng pag-iisip mo. Para kang si madam auring 🤡

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  3. Good move by BYD
    Good luck to them and to the Philippine government

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