By VJ Bacungan
So, we welcome the Year of the Wood Dragon. Represented by the most powerful creature in the 12-animal Chinese zodiac, this New Year is said to be most auspicious, offering unprecedented opportunities for us all. It is especially lucky that it is paired with the nurturing wood element, which signifies improvement and abundance.
Even if you’re not a believer of Chinese astrology, it is certainly clear that the Philippine car industry is on the up and up. The Chamber of Automotive Manufacturers of the Philippines Inc., the country’s premier organization of car brands, said it is confident that it would hit its all-time-high sales target of 423,000 units for the whole of 2023.
And one segment of the automotive market that is especially ripe for growth are electric vehicles (EV). The Electric Vehicle Association of the Philippines (EVAP) reported on December 2023 that 2,557 EVs were registered from January to June 2023, more than double the figure of the same period in 2022.
Among these, 516 are battery-electric vehicles, while the rest are hybrid-electric vehicles or those that combine an internal-combustion engine (ICE) and an electric motor. EVAP said there are already more than 16,000 EVs in the country, with the figure expected to swell massively in the next 5 to 10 years.
Laying the foundation
Although EVs have been sold in the Philippines for more than a decade, it only entered the mainstream consciousness in recent years as a result of two landmark pieces of legislation.
The first is Republic Act (R.A.) 11697 or the “Electric Vehicle Industry Development Act,” which lapsed into law on April 2022 and provided the framework for the sale and manufacture of EVs and their associated infrastructure.
For ordinary EV car buyers, the law offered a bevy of incentives until April 2030 like exemption from the (dreaded) Metro Manila number-coding scheme, as well as discounted motor vehicle user’s charge.
The measure also mandates significant changes in EV infrastructure, including the construction of dedicated EV parking slots and charging stations in all new public and private establishments (hence, all those EV charging stations at malls). Even older buildings will have to be renovated to comply with this.
The second legal instrument comes courtesy of President Ferdinand Marcos Jr., who is an avid car enthusiast. Executive Order No. 12, which was issued on January 2023, cuts all duties on imported EVs (excluding hybrids) and spare parts until 2028.
E.O. No. 12 was instrumental in substantially lowering the price of EVs, with some models even undercutting their ICE counterparts. Indeed, the 905-horsepower Lotus Eletre R EV crossover that was launched at the 2023 Philippine Electric Vehicle Summit will outrun an Aston Martin DBX 707, all while costing over three times less.
Fully charged in EVs
With ever-advancing battery technology, zero tailpipe emissions and huge power from a standstill, many Filipinos are seeing the viability of EVs, particularly in gas-tank draining city commutes.
Combined with greater government support, many local car brands have naturally jumped on the bandwagon to provide well-priced EVs for the Philippine market. And unsurprisingly, it’s the Chinese brands that are taking the lead.
That’s because the People’s Republic, regardless of the geopolitical feelings that we may harbor, is one of the global leaders in EV development. Jetour Auto Philippines was the first to offer a mini EV with a full manufacturer’s warranty and after-sales support in the form of its cute Ice Cream three-door hatchback.
Meanwhile, BYD Philippines offers solely battery EVs that use its highly innovative “Blade” battery pack, while MG Philippines is now selling its MG4 and Marvel R EV crossovers. And the likes of GWM, which has made waves for its value-packed hybrid crossovers, is set to bring its adorable Ora five-door EV hatchback to our shores.
And it’s not just EVs where private enterprise is running at full charge. Companies like Solarius Auto Charging are looking to set up 500 EV charging stations nationwide by the end of 2025, partnering with hotels, malls and other establishments to make longer trips with EVs more viable.
Where it’s headed
Indeed, the lack of a widespread EV-charging station network in the Philippines is one of the biggest factors in preventing the full adoption of EVs locally.
But the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), a product of R.A. 11697, seeks to remedy this for the coming decade. At the very minimum, the Philippine EV industry is aiming to sell 311,700 EVs and put up 7,300 charging stations by the end of 2028.
These figures are expected to reach at least 852,100 EV sales and 20,400 charging stations by the end of 2040, which is also the year that the government has targeted to ban the sale of brand-new ICE vehicles.
The Department of Trade of Industry also announced on November 2023 that it is planning to kick off the pilot phase of its EV subsidy program by as early as July 2024. The agency is looking to provide subsidies of P500,000 per unit for PUVs, P20,000 per unit for three-wheelers and P10,000 per unit for e-bikes.
Given how quickly EVs locally have gone from relative obscurity to viable mobility options, it seems fitting that the industry can count on a Wood Dragon to see them through in 2024.
