EV sales growth seen driven by new entrants

By Justine Irish D. Tabile, Reporter

ELECTRIC VEHICLE (EV) sales are expected to grow next year with new entrants attracted by expanded fiscal incentives and the development of the charging network, Toyota Motor Philippines Corp. (TMP) said.

“With the sustained effect of expanded fiscal incentives for hybrid and plug-in hybrid models, the entry of new market players, and continuous public-private collaboration on EV charging infrastructure, TMP expects that EV sales volume will continue to increase,” TMP told BusinessWorld.

“Demand will be driven by strong competition in this segment of the automotive market,” it added.

For 2024, TMP expects to double its EV sales to 18,000 units. As of November, TMP had sold 12,553 Toyota and Lexus EVs, accounting for 7% of the company’s total sales. 

“We can attribute this growth to the accessibility of Toyota hybrid EV (HEV) models as well as the expansion of zero import duty exemption to Toyota and Lexus HEV models under Executive Order 12,” it said.

“With total industry sales expected to hit the 470,000 mark, EV sales will account for almost 4%, a slight increase from last year in terms of share,” it added.

Despite increasing sales, TMP said that high upfront costs, limited charging infrastructure, and the need for greater consumer awareness about EV benefits and reliability are limiting EVs’ appeal in the Philippine market.

“Addressing these requires a multifaceted approach involving government incentives, industry collaboration, and public education campaigns,” it said.

“At Toyota, we are continuously expanding our line-up of electrified vehicles, including HEVs and battery EVs. We want to provide customers with the choices that best fit their conditions,” it added.

TMP, in its 78-hectare Philippine Economic Zone Authority-registered facility in Santa Rosa, Laguna, has the capacity to produce three models: Vios, Innova, and Tamaraw.

Asked if they plan to integrate EV manufacturing in the facility, it said, “It is one of the company’s aspirations.”

“To that end, TMP contributes to the continuous development of the entire manufacturing industry, including automotive parts and component manufacturers,” it said.

“EV manufacturing would require a whole-of-industry approach and strong support from the government to boost localization capabilities and raise the regional competitiveness level of the Philippines,” it added.

In 2024, the company expects its auto parts export sales to hit $1.21 billion, rising to $1.28 billion in 2025.