MANY automotive pundits predict that in the next 5 to 10 years, electric vehicles (EVs), including hybrids, are poised to have the greatest impact on the Philippine automotive industry, and the country is well-positioned to ride this wave of transformation.
The shift began with hybrid electric vehicles (HEVs), which combine an internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions. Early adoption of hybrids like the Toyota Prius demonstrated the viability of electrification. The introduction of the Nissan LEAF helped bring awareness to battery electric vehicles and companies like BYD exand now, the focus is rapidly shifting toward fully electric vehicles (EVs) and plug-in hybrids (PHEVs).
In the Philippines, the move towards EVs is gaining momentum thanks to the Electric Vehicle Industry Development Act (EVIDA) and Executive Order No. 12, both designed to accelerate the country’s EV adoption. EVIDA, signed into law in 2022, provides a comprehensive framework that encourages the manufacture, promotion, and use of electric vehicles. It mandates government agencies and large corporations to convert a portion of their fleets to electric, while also incentivizing the private sector through tax exemptions, reduced duties on EV imports, and infrastructure development for charging stations.
Additionally, Executive Order No. 12, signed in 2023, further supports this shift by reducing import tariffs on EVs from 30 percent to 0 percent. This executive order makes EVs more affordable for Filipino consumers, providing easier access to electric cars. In particular, it opens the door to a surge of EVs from neighboring countries like China and Vietnam, which are already producing low-cost, high-quality electric vehicles at scale.
Manufacturers from these countries, such as China’s BYD and Vietnam’s VinFast, are already expanding their markets into the Philippines, offering a range of affordable options that could significantly boost local EV sales.
Moreover, the Philippines’ geographic proximity to China and Vietnam ensures a steady supply of EVs, batteries, and components. The increasing presence of charging infrastructure in major cities, as well as the government’s plan to expand the network to more rural areas, further reduces the barriers to EV adoption.
Advances in battery technology, such as solid-state batteries and fast-charging solutions, also play a key role in making EVs more practical for everyday use, addressing concerns like range anxiety.
As the Philippine government continues to push for green energy solutions and more sustainable modes of transportation, the combination of favorable policies, tariff reductions, and easier access to EVs from global manufacturers will drive significant growth in the country’s electric vehicle market. With EVIDA and Executive Order No. 12 in place, the Philippines is poised to significantly expand its EV footprint and become a key player in the Southeast Asian electric vehicle landscape.