Filipinos turn electric amid high fuel prices

John Rex O. Gavales, a 22-year-old entrepreneur from Bulacan province north of the Philippine capital, bought his Chinese-made BYD Seagull electric car last year to replace his diesel-based hatchback amid high fuel prices.

“My fuel costs are far less now at about PHP 1,000 for every 600 kilometers from PHP 4,000,” he told BusinessWorld via Zoom. “I love this car.”

Fuel adjustments have led to a net increase of PHP 4 per liter for gasoline and PHP 3.80 for diesel as of May 20, according to Energy department data posted on its website.

Last year, 18,690 electric vehicles (EV) were sold in the Philippines, accounting for 4% of total car sales, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI). It expects EV sales to increase by 7% to 20,000 units this year.

Mr. Gavales, who bought the BYD car for PHP 938,000 (USD 16,800), admits that he often suffers from “range anxiety,” worried that his car battery would get drained while on a road trip.

“I was in Tarlac, coming from Bulacan, and I only had about 55% of charge left,” he recalled. “Do I continue driving home or do I pass by San Fernando or Angeles City to charge?”

“As an EV owner, that is my only concern, especially when going to places without a clear route plan,” he added.

There were more than 900 publicly accessible charging stations in the Philippines as of March 31, according to the Department of Energy (DoE).

“The DoE continuously develops policies and programs to further strengthen the adoption of EVs and the rollout of electric vehicle charging stations in the Philippines,” Patrick T. Aquino, director at the DoE’s Energy Utilization and Management Bureau, said in a Viber message.

These include guidelines and standards for the installation, operation and safety of EV charging stations, he pointed out.

Compared with an internal combustion engine vehicle (ICEV), an electric car is more efficient, and owners can save about PHP 3.29 per kilometer based on current energy prices, Mr. Aquino said.

“EVs offer several benefits compared with ICEVs, including less maintenance due to fewer moving parts,” he pointed out.

The Electric Vehicle Industry Development Act seeks to promote the development and adoption of EVs in the Philippines by mandating an increase in the share of EVs in corporate and government fleets.

Under the Comprehensive Roadmap for the Electric Vehicle Industry, the business-as usual scenario target is a 10% EV fleet share by 2040, while it sets a clean energy scenario target of at least 50%.

The roadmap also outlines a short-term goal of deploying 7,300 EV charging stations by 2028.

While these targets seem ambitious, Mr. Aquino said they could be hit with the right policies and interventions.

“By combining infrastructure development with public engagement, we can accelerate the transition to EVs and build a cleaner, more sustainable transportation sector,” he said.

CAMPI President Rommel R. Gutierrez earlier said EV sales growth is expected to track overall industry sales growth, driven by increasing consumer adoption, supportive government policies and the entry of more players.

Edmund A. Araga, president of the Electric Vehicle Association of the Philippines, expects EV adoption among Filipinos to rise 20%. There are also more choices now when it comes to EV brands, he said in a Viber message.

Several electric vehicle companies have established a presence in the Philippines, including China’s BYD and Changan Motor Group, Vietnam’s VinFast LLC and Tesla. Local companies like ToJo Motors Corp. make electric public utility vehicles.

Nissan Motor Co. Ltd., Kia Motors and Hyundai Motor Co. are also present in the Philippine EV market with their respective electric models like the LEAF, EV6 and IONIQ 5.

Sustainability push

In line with the government push, industry players are also leveling up their game to be at the forefront of the country’s EV adoption.

Green logistics service provider Mober expanded its EV fleet to more than 110 units last year and is now looking to deploy 500 EVs by yearend.

“Mober positions itself as the go-to partner for businesses looking to transition to green logistics without disruptions,” Dennis O. Ng, founder and chief executive officer at Mober, said in an e-mailed reply to questions.

As part of its medium to long-term strategy, the company is planning to build two more EV charging hubs in Southern and Northern Luzon to boost logistic capacity.

“We are currently finalizing the investment requirements for these projects, but we anticipate allocating a substantial portion of our capital expenditure over the next two to three years to support infrastructure development, fleet expansion and renewable energy integration,” Mr. Ng said.

“This expansion is a critical step in scaling our operations while maintaining our commitment to zero-emission logistics,” he added.

Manila Electric Co. (Meralco), the main power distributor of Metro Manila and nearby cities, is converting more than 150 of its vehicles to electric as part of its sustainability push. It has also deployed more than 60 level 2 and level 3 fast chargers to support the shift.

“With the expansion of the EV market, declining costs and the numerous advantages of electric vehicles including lower emissions, reduced maintenance, significant fuel savings and government incentives, the shift to electrification has become increasingly viable,” Ronnie L. Aperocho, Meralco executive vice-president and chief operating officer, said in a Viber message.

By the end of the decade, the company aims to invest and electrify 25% of its fleet, or more than 700 electric vehicles, supported by a robust charging infrastructure — level 3 direct current fast chargers across its business centers, sector offices and main headquarters, he added.

The company through unit Movem Electric, Inc. seeks to become a “caring player” by expanding commercial charging infrastructure in and out of its franchise area. Mr. Aperocho said public awareness is also needed to accelerate local EV adoption.

“One of the biggest concerns among potential buyers is range anxiety — the fear of running out of battery before reaching a charging station,” he said. “While EV battery technology has advanced significantly, skepticism remains due to misinformation and a general lack of awareness about the benefits of EV ownership.”

While there is a positive outlook on the future of EV adoption and infrastructure development in the Philippines, Mr. Ng said the industry needs “a stronger ecosystem” supported by government policy, infrastructure and private sector collaboration.

He said the Electric Vehicle Industry Development Act is “a promising step forward” with its tax breaks, import duty exemptions, and the mandate for EV fleet adoption in the government and private sector.

“However, its full potential can only be realized with clear guidelines, local government support and stronger enforcement,” he added. – Sheldeen Joy Talavera, Reporter