The fierce competition that is happening right now among EV manufacturers will eventually result in low EV car prices and high quality electric vehicles
By Boying Soriano
It was more than a century ago when the world witnessed a revolution in the automotive and transport industry with the introduction of the Ford Model T in 1908. From a horse and buggy type of transportation system, the whole world woke up to motorized transportation. Motorized transportation that improved the lives of people, fueled economic growth, and made an auspicious start into the 20th century.
Today, we are in the middle of another revolution in the automotive industry. The phenomenal growth in the sales of electric vehicles (EVs) around the world signals the start of our transition from cars powered by Internal Combustion Engines (ICE) to cars powered by electricity (Electric Vehicles).
It took a visionary named Elon Musk to fearlessly thread into unknown territory in 2003 to launch TESLA- an all-electric automotive company to light the match that has sparked today’s automotive revolution. It took another five years for TESLA to launch its first commercial model- the TESLA Roadster. After its initial launch, the rest was history. New models were launched every two years starting 2012 until 2022.
While legacy car brands watched from the sidelines as this evolution of electric vehicles transitioned to a full- blown revolution, Chinese carmakers like BYD have seen a market niche that they can strongly dominate with only TESLA as a major competitor. Together with TESLA, Chinese EV manufacturers have dominated the global market for electric vehicles. From an insignificant start of less than a hundred thousand electric vehicle sales in 2011, the global electric market is forecast to reach around 14 million EV sales by the end 2023 with Chinese car brand BYD leading the pack, capturing 16 percent of the global market with TESLA coming in as a close second placer at 12-percent market share. Legacy car brands like Mecedes-Benz, BMW, Toyota, Nissan, GM, Ford, etc. have been caught flatfooted by TESLA and the major Chinese EV manufacturers. And now they are trying to catch up as fast as they can to join this automotive revolution.
This is very good news for the global automotive market. The fierce competition that is happening right now among EV manufacturers will eventually result in low EV car prices and high-quality electric vehicles.
In the Philippine setting, we have a long way to go as far as EV adoption is concerned. First and foremost is the lack of EV charging infrastructures. There is still that big fear of range anxiety in the Philippine market. Compared to ICE- powered vehicles where there is a proliferation of gasoline stations, charging stations are far too few to charge electric vehicles when the need arises. Our government should offer more attractive incentives to enterprises who plan to put up charging stations to service electric vehicles. Charging stations are the gasoline stations of the future. Without charging stations, EV adoption in our country will be a slow process compared to that of other countries that have a head start in adopting electric vehicles.
The second major issue is the cost of batteries. While our new EV law allows the tax-free importation of EVs from this year to 2028, what about exempting replacement EV batteries from taxes, too? EV batteries need to be replaced between 5 and 8 years. Having said this, the current cost of replacement batteries is about 25 percent of the cost of the EV. Unless the cost of EV batteries comes down to more affordable levels, the cost of batteries will play a major issue in encouraging motorists to switch to electric vehicles.
The deluge of Chinese EV brands is a positive sign for the Philippine automotive market. Now that these vehicles are available in the market today, government and other stakeholders in promoting clean energy should come together and find more ways to further encourage the ownership of electric vehicles. The electric vehicle revolution is happening in many parts of the world, as we speak right here, and right now. Are we willing to be part of this revolution? For the sake of our environment, our Mother Earth, our children and our future, let us participate wholeheartedly and make our world a better place to live in!
