Toyota Motor Philippines (TMP) has announced significant price reductions for several of its Hybrid Electric Vehicle (HEV) models in response to the newly signed Executive Order No. 62. This move aligns with the Philippine government’s efforts to promote sustainable mobility and make eco-friendly vehicles more accessible to consumers.
Government Tariff Exemption Leads to Lower Costs for Toyota’s Eco-Friendly Vehicles
The price cuts affect popular models including the Toyota RAV4, Alphard, and select Lexus HEVs. These reductions come as a direct result of the exemption from import duties for Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) under EO 62.
President Ferdinand Marcos Jr. issued EO 62 in June 2024, modifying import duty rates on various commodities to help manage inflation and protect Filipino consumers’ purchasing power. For the automotive industry, this translates to lower costs for hybrid vehicles, making them more attractive to potential buyers.
Toyota’s Commitment to Environmental Sustainability
Toyota has expressed appreciation for the government’s initiative, stating that it aligns with their “multiple pathway approach to carbon neutrality.” This approach involves offering a range of electrified vehicle options to suit different market needs and infrastructure readiness.
Broader Trend of Eco-Friendly Vehicle Adoption in the Philippines
The move towards more affordable hybrid vehicles is part of a broader trend in the Philippines. The government has been actively promoting the adoption of electric and hybrid vehicles through various incentives. For instance, the TRAIN law already provides a 50% excise tax exemption for HEVs, further reducing their cost.
Toyota’s Current HEV Lineup in the Philippines
Toyota’s HEV lineup in the Philippines includes popular models such as the Camry, Corolla Altis, Corolla Cross, and RAV4 Hybrid. These vehicles combine a conventional engine with an electric motor, offering improved fuel efficiency and reduced emissions without the need for external charging.
Future Expansion of Toyota’s Hybrid Vehicle Offerings
In light of these developments, Toyota is considering expanding its HEV offerings in the country. TMP chairman Alfred Ty has indicated that the company’s global direction towards 2030 involves a strong focus on hybrid and full electric vehicles. He views the inclusion of HEVs in the zero-tariff policy as a positive step, noting that hybrid technology often serves as a bridge to full battery electric vehicle adoption.
Conclusion: A Step Toward Sustainable Mobility
This price reduction strategy is expected to boost the adoption of hybrid vehicles in the Philippines, contributing to the country’s goals of reducing emissions and promoting sustainable transportation. As the automotive industry continues to evolve, such initiatives play a crucial role in shaping consumer choices and driving the transition towards cleaner mobility solutions.
