With the world’s attention increasingly focused on sustainability and the need to curb carbon emissions, the Philippines stands at a turning point in the evolution of its transportation sector.
Between 2014 and 2022, the Philippines’ Land Transportation Office (LTO) reported that there were 9,666 electric vehicles registered with the agency, of which 1,168 were sport utility vehicles (SUVs) and utility vehicles (UVs), and 346 were sedans. This shows the potential for electric vehicles (EVs) to play a bigger role in the future of mobility.
EVs in the Philippines are still growing. Though many car brands have such models in their catalog, BYD Philippines is one of the few companies offering battery-only vehicles. Their unique offerings make them one of the frontrunners driving the adoption of EVs in the country.
But while the strides made by BYD and other industry players are commendable, the road ahead is still paved with EV challenges and opportunities.
If you’re new to the EV industry, keep on reading and let this guide help you learn about the market, initiatives, and best practices when it comes to EVs.
Analysis of the Philippine EV Market and Infrastructure
As more consumers opt for environment-friendly vehicles, electric car sales in the Philippines soared in the first quarter of 2023, which is reflective of the general EV sales surging nearly six-fold during that period. Today, there are 36 electric car models available in the country for eco-conscious buyers to choose from.
While the numbers look promising, it’s still in its early stages compared to other countries. Norway leads the transition, with 80% of its vehicle sales in 2022 being electric. Iceland and Sweden are just behind at 41% and 32%, respectively.
Despite the country’s figures, the jump in sales from 2022 to 2023 demonstrates that Filipinos are showing interest in EVs and their opportunities. Wide-scale adoption, however, is not so easy.
Several factors are influencing EV adoption in the country. Soaring gas prices and the desire for more eco-friendly solutions drive interest in alternative transportation.
Cost, EV availability, charging infrastructure concerns, and the need for continued education on the benefits of electric cars are still challenges that automotive companies must grapple with.
Today, more private companies in Metro Manila are embracing the EV wave, with corporate giants offering charging stations in their parking areas for on-the-go charging.
Policies and Initiatives for EVs in the Philippines
Electric Vehicle Industry Development Act (EVIDA Law)
At the forefront of the Philippines’ commitment to sustainable transportation is the Electric Vehicle Industry Development Act (EVIDA Law). This law provides a legal foundation for EV policies, outlining incentives and benefits for manufacturers, importers, and users of electric vehicles.
It offers tax incentives and exemptions to promote local production and use of electric vehicles, clearly signaling an intent to foster the market for EVs.
For instance, importing EVs can benefit from incentives in the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Owners of fully battery-operated vehicles also enjoy a 100% excise tax exemption.
Comprehensive Roadmap for the Electric Vehicle Industry
In their Comprehensive Roadmap for the Electric Vehicle Industry, the Department of Energy (DOE) highlighted the government’s dedication to a robust and sustainable EV ecosystem.
As of the latest update in May 2023, this roadmap outlines the strategies and action plans to promote energy-efficient and environmentally friendly transportation.
It encompasses a range of measures, including the DOE’s goal for the Philippines to produce and export EVs by 2040. The document also includes battery research and development support to urge innovation for a brighter EV future.
Public Utility Vehicle Modernization Program
Aligned with broader government goals, the Public Utility Vehicle Modernization Program (PUVMP) is a transformative initiative upgrading the country’s public transportation system.
This program focuses on aspects such as bringing PUVs up to modern standards and giving those who need to make the change options to secure loans from banks. It also states that agencies like Technical Education and Skills Development Authority (TESDA) will aid non-participating drivers with livelihood programs or training.
The PUVMP not only addresses environmental concerns but also aims to improve the overall commuting experience for Filipinos.
Recommendations and Best Practices for EVs
Government
The government plays a pivotal role in catalyzing EV adoption. Increasing incentives and subsidies for electric vehicle manufacturers and users is a positive step that stimulates market growth.
Continuing to invest in expanding EV infrastructure, including charging stations, and enhancing grid capacity to support the growing demand for electric vehicles is a sound policy. While plans are in motion within Metro Manila, the expansion is yet to be done in other parts of the country.
As EV adoption grows, the government should continually enact and enforce supportive laws and regulations. These include launching public awareness campaigns to dispel myths and educate citizens about the benefits of EVs.
Private sector
Companies like Ayala lead the charge by innovating and developing more affordable and efficient EV models. As demonstrated by one of their subsidiaries, AC Motors, the focus should be on offering incentives, such as multiple charging stations, while aligning with sustainability goals. With this, the company aims to set up at least 100 charging points by 2024.
They also want to make EVs more accessible by opening more branches. Diversifying products and services to meet consumer needs can further improve AC Motors’ market penetration.
To promote EV adoption, companies aside from Ayala should collaborate and partner with other EV players and stakeholders to create a more interconnected and efficient ecosystem.
Civil society
By actively promoting the benefits of EV adoption, civil society can influence a positive shift in consumer behavior. Advocacy groups for electric vehicle adoption can greatly benefit by observing and evaluating the impact of existing policies and initiatives to gather insightful information.
Civil society organizations can also provide constructive feedback and suggestions for improvement. Engaging the public through awareness campaigns and media collaboration will elevate the discourse on EV challenges and foster a supportive environment.
Consumers
Buyers are critical players in the adoption of EVs as they’re the ones purchasing and driving. They must make informed and rational choices by considering and comparing the advantages and disadvantages of EVs versus conventional vehicles.
Adopting EVs while considering individual driving habits and needs contributes to the overall sustainability of the transportation sector. Consumers can further support the environmental benefits of EV usage by actively practicing eco-friendly driving and charging habits.
Sharing personal experiences and insights about EVs with others creates a positive narrative around electric vehicles in the community, encouraging more people to accept them.
A Greener Drive for the Philippines
In the Philippines, where traffic jams and carbon emissions have become synonymous with commuting, the rise of EVs represents a future that’s sustainable and more efficient. From the impressive EV sales growth to the forward-thinking government policies, every stakeholder contributes to the push for EVs to become the norm.
Why not join the greener movement with BYD Philippines? With a comprehensive lineup of passenger EVs, BYD is one of the largest electric vehicle manufacturers globally.
Known for our cutting-edge Blade Battery, BYD sets industry standards for car safety. Through our commitment to sustainability and technological innovation, we are poised to help forge the future of eco-friendly mobility in the Philippines.
Visit the BYD Philippines website and social media accounts to know more, or check out our showroom for our pure electric vehicles.
