The Philippines is on the verge of a new revolution.
The inexorable drift toward the use of electric vehicles (EVs) is gaining steam, revolutionizing mobility in once unimaginable ways.
With China-made EVs swarming the domestic automotive market, the inevitable shift may happen sooner rather than later.
Chinese auto brands Foton, Geely, BYD, Hongqing, and GAC—all of which produce their respective EV models—are entering the market dominated by Japanese and Western car models.
The Japanese actually inspired the switch to green, environment-friendly autos as a novel way of transporting people and cargo. By the turn of the millennium, Japanese automakers had been showcasing their green cars through the biennial Toyo Motor Show. Mitsubishi Outlander, Toyota Prius, and Nissan Leaf are some of the cars they produce, proof that they are way ahead of the Chinese in the race to market dominance.
Seismic shift
Now, times have changed, and so have buyer preferences.
According to the latest Department of Trade and Industry data, with aggressive marketing and reasonable pricing that enhance consumer interest and a steady stream of tech-laden cars, the earthshaking shift to EVs will see the industry hitting 6.6 million units by 2030.
DTI said the number of registered EVs in the Philippines grew by 45 percent in 2024, adding that the percentage has increased as more automakers unload electric cars, e-motorcycles, and electric public transport vehicles.
The Land Transportation Office reckoned that there were 16 million registered vehicles in 2024, but it did not say what percentage comprised EVs.
Executive agencies other than DTI, such as the Transportation and Finance departments, are crafting policies that encourage the shift to EV adoption.
Congress has also been doing its part. The passage of the Electric Vehicle Industry Development Act (EVIDA) in 2022 was a legislative milestone, as it provided for tax incentives, mandated EV charging stations in shopping malls, and set fleet conversion targets for the public and private sectors.
New Normal
With EVIDA in place, EVs are fast becoming the new normal in Philippine transportation.
According to the Electric Vehicles Association of the Philippines (EVAP), an advocate of the EV switch, the EV market has seen surging sales powered by increasing consumer interest, improved charging infrastructure, and supportive government policies.
According to Trade and Industry data, in 2024, there were about 15,300 EVs in running condition nationwide, including 354 electric motorcycles and 88 electric buses.
However, safety and quality regulations for EVs will help ensure a smooth transition to electric mobility.
EVAP said in a statement released in early March that this is why energy providers, mall operators, real estate developers, and local government units must collaborate to expand the EV charging network.
Metro Manila had over 100 charging stations, with more being installed in Cebu and Davao. Nationwide, there were a total of 847 charging stations last year, according to DOE data
AC Mobility, a company under the Ayala conglomerate, plans to expand its charging network by installing 700 charging stations in 300 locations nationwide this year.
The sum of all parts
Where there are vehicles, there’s also the need for replacement parts such as tires and batteries.
According to 2020 data from the Asia-Pacific Economic Cooperation, the automotive parts sector involves over 250 local businesses that produce and import auto parts and components.
It has become one of the country’s biggest employers outside of the national government, with over 67,000 workers under its wings, second only to San Miguel Corporation, which has over 70,000 employees.
Logically, the consistent growth in annual vehicle sales fires up the demand for automotive parts, including EV batteries.
Two critical components of battery production abound in the country in the form of nickel and cobalt.
These “critical minerals” are so-called because of their great demand, which raises the specter of supply shortages and hoarding.
Battery production hub
A published report (The First Philippine Industrial Park Auto Parts Industry Brochure), said this rich resource base, combined with the government’s commitment to green energy initiatives and supportive policies for foreign investment, makes the country a potential hub for battery manufacturing.
The report said the government could offer a pool of talent and a strategic location to serve the local market and the broader Southeast Asian region
In addition to the natural resources, there are also state-backed facilities for research and development to ensure that plant operations and safety standards meet global benchmarks
The report quoted the DTI as saying it “aims to strengthen the sector’s position as a significant automotive player in the medium term and to make the Philippines a regional hub for vehicles and parts in Asia through a strong domestic supplier base.
However, the DTI points out that local auto parts businesses are “facing competitiveness issues due to the absence of economies of scale and a weak supply base.”
Consequently, the DTI recommends upgraded policies and temporary subsidies to support the sector’s growth. (Ramon Tomeldan)
