Electric Cars and Hybrid SUVs are Still Exempted from Number Coding in PH

The electric vehicle (EV) movement is gaining significant momentum in the Philippines, heralding a new era of cleaner mobility. Recent studies reveal that the country boasts approximately 56,000 electric vehicle units, with EV registrations more than doubling in the first half of 2024 compared to the previous year. As global interest in electric cars surges, it’s clear that this trend shows no signs of slowing down.

While electric vehicles are celebrated for their potential to transform sustainable transportation, questions about their regulatory treatment naturally arise—particularly concerning traffic management policies like number coding.

What is Number Coding?

In the Philippines, number coding is a traffic regulation scheme designed to alleviate congestion by restricting the days certain vehicles can operate based on their license plate numbers. This system is crucial in managing the chaos of daily traffic jams in urban areas. But what happens when electric vehicles enter the equation?

Are Electric Cars Exempt from Number Coding?

According to Republic Act No. 11697, also known as the Electric Vehicle Industry Development Act (EVIDA), battery-operated, hybrid, light, and plug-in hybrid electric vehicles are indeed exempt from the number coding scheme. This exemption aims to support the growth of the local EV industry and reduce dependence on fossil fuels.

EVIDA has provisions to prevent car owners from circumventing the number coding rules by purchasing additional vehicles. This ensures that the primary goal of promoting sustainability remains intact. So, if you’re contemplating an EV purchase but are concerned about traffic restrictions, you can take comfort in knowing that electric vehicles enjoy a significant advantage when it comes to number coding.

Benefits of Electric Vehicle Ownership

Beyond the relief from number coding, EVIDA offers a suite of non-fiscal incentives for EV owners, which include:

• Priority Registration: Streamlined processes for registration and renewal.
• Special Vehicle Plates: Unique identification for electric vehicles.
• Fast-Tracked Applications: Accelerated processing for franchises and import permits for EV operators and manufacturers.
• Technology Transfer: Permits for foreign nationals to work on technology transfer agreements.

Additionally, owning an EV or hybrid vehicle comes with several other advantages:

• Tax Exemptions: Fully battery-operated vehicles enjoy a 100% excise tax exemption, while hybrids are granted a 50% reduction.
• Job Creation: Increased opportunities for local skilled labor in the growing EV sector.
• Fuel Independence: A significant reduction in reliance on imported fuel sources.
• Infrastructure Support: Access to EV charging stations at gas stations and priority parking in various establishments.
• Cost Savings: Lower fuel costs and a more cost-effective vehicle upgrade path.
• Environmental Impact: Contributing to a greener, more sustainable future.

As the Philippines embraces the electric vehicle revolution, understanding the intricacies of regulations like number coding is essential for potential EV owners. With exemptions in place and numerous benefits to enjoy, now is an excellent time to consider making the switch to an electric vehicle. Not only do you contribute to a more sustainable environment, but you also enjoy practical advantages that make driving an EV both appealing and beneficial.