Small PHL EV production capacity to limit competitiveness with foreign rivals

By Almira Louise S. Martinez, Reporter

THE Electric Vehicle Association of the Philippines (EVAP) said its members are “far behind” international brands and will struggle to compete due to the limited scale and sophistication of domestic-based production.

“Local manufacturers do not have the capacity in terms of technology and capitalization,” EVAP President Edmund A. Araga told BusinessWorld in an interview.

“We are far beyond compared to competitors outside the Philippines,” he added.

According to the Department of Energy (DoE), the lack of familiarity with electric vehicle (EV) technology among consumers and industry participants impacts consumer confidence and slows the pace of adoption.

It added that the EV industry is experiencing challenges with “limited manufacturing capacity, an underdeveloped value chain, and insufficient investments in charging systems and services.”

“Local EV companies should first be strengthened and expanded to meet domestic demand, and eventually compete with international brands,” the DoE said in an e-mail.

The DoE is monitoring the progress of the Electric Vehicle Industry Development Act and the Comprehensive Roadmap for the EV Industry (CREVI) to address these shortcomings.

Key measures include the “rollout of EV charging infrastructure, provision of fiscal incentives for both manufacturers and consumers to reduce cost, awareness campaigns, and capacity-building initiatives, including research and development efforts.”

“That’s why we’re looking for solutions and the right programs that will set forth the rollout of our local manufacturers,” Mr. Araga said.

“We need to give emphasis to local manufacturing,” he added.

According to October data from the Board of Investments, domestic EV sales have totaled 15,000 units, subject to validation in the Motor Vehicle Registration data.

Hybrid EVs were the most popular type of EV on the market in 2023, followed by battery electric vehicles, the DoE said.

In 2025, the DoE sees growth in the Philippine EV market. The CREVI projects sales and registrations of 311,700 units in a business-as-usual scenario.