Agreement to kickstart PH e-moto production signed

The Philippines will soon produce two-wheeled electric vehicles following the agreement signed by the Ayala-backed Integrated Micro-Electronics, Inc. (IMI) and Zero Motorcycles.

Conducting the signing ceremonies between the two firms were Ayala Corporation chairman Jaime Augusto Zobel De Ayala and Zero Motorcycles Chief Executive Officer Sam Paschel.

Under the agreement, Zero Motorcycles has agreed to subcontract to IMI its manufacturing operations pertaining to electric motorcycle assembly and other related sub-assemblies, such as battery and motor assembly.

The agreement projects an annual revenue of $65 million (around P3.6 billion) and investments of $250 million (nearly P14 billion) over the next five years. In addition, the venture will generate at least 200 new jobs for Filipinos.

On the other hand, IMI will provide the local manufacturing facility. Currently, IMI’s headquarters is in Biñan, Laguna, where they operate as an original equipment manufacturer (OEM) in diversified sectors that cover automotive, industrial, medical, telecommunications infrastructure, storage devices, and consumer electronics.

The IMI-ZERO facility will be assembling full electric motorcycles for Zero’s Europe, Asia, and other markets.

With that, the Philippine government has welcomed the cooperation agreement between the two.

In a statement, Department of Trade and Industry Secretary Fred Pascual considered the agreement historic as it is “a pioneering activity involving high-end electric batteries, motors and motorcycle assembly.”

“With this investment, we will be better positioned as an export manufacturing hub for electric batteries and vehicles in the region. This partnership between IMI and Zero Motors is a testament to the expertise and capabilities of our local manufacturing sector,” Pascual — one of the proponents in the country’s transition to electric vehicles and the use of green technology — was quoted as saying.

In addition, the DTI said that the government — through the Board of Investments (BOI), an Investment Promotion Agency (IPA) under the DTI — is eyeing to bring down the cost gap between traditional vehicles and EVs to increase market demand.

“Further, the law provides for the creation of the Electric Vehicle Incentive Strategy (EVIS) that will provide more incentives for EV-related investments to help establish an enabling environment for the said sector,” the DTI noted.

Aside from the DTI chief, President Ferdinand Marcos Jr. and Trade and Industry Secretary Fred Pascual Energy Secretary Raphael Lotilla, Special Assistant to the President Secretary Antonio Lagdameo Jr., Communications Secretary Cheloy Garafil, and Philippine Ambassador to the United States Jose Manuel Romualdez, witnessed the ceremonial signing of agreement.

Joining Ayala Corporation chair is Industrial regional manager Dave Corry for IMI while Paschel was accompanied by Zero Motorcycles Chief Operating Officer Alex Acket.

Relatedly, the Electric Vehicle Association of the Philippines (EVAP) clarified that it is supporting the DTI’s stand on junking import tariffs for two-wheeled electrified motorcycles.

According to EVAP President Edmund Araga, the association “has been working tirelessly to promote and advance” EV adoption in the country.

“In reality, EVAP has been pushing for all EVs to be zero tariff, including two-wheel vehicles except for e-Jeeps and e-Trikes which have local manufacturing and assembly in the country,” the group shared.

Per Araga, the move would benefit consumers by making EV models more affordable, but it would also help the country achieve its goals of reducing greenhouse gas emissions and improving air quality.

Aside from creating a more favorable environment for EV, EVAP noted that it has been advocating for the implementation of supportive policies, like tax incentives and charging infrastructure development.

Photos from Philippine Communications Office, Zero Motorcycles, Department of Trade and Industry, Electric Vehicle Association of the Philippines

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