WITH the growing concern about climate change and rising energy costs, more and more companies in the Philippines are racing to put electric vehicles (EVs) on the road.
Compared to traditional cars that use internal combustion engines, EVs are marketed to be one of the more efficient tools toward carbon neutrality and over the long-term, an escape route from skyrocketing oil prices.
These sustainability imperatives have driven big local corporate names like Manila Electric Co. (Meralco) and the Ayala Group to actively participate in the switch. Even the government is starting to dangle incentives to EV manufacturers to fast-track its adaptation in the country.
Meralco, under its Green Mobility program, vowed to electrify its vehicle fleet. DHL Express Philippines also announced the deployment of a new fleet of EVs to handle shipment in key cities in Metro Manila.Meanwhile, the Ayala group, through industrial arm Integrated Micro-Electronics Inc., has been rolling more charging stations into the mainstream using Ayala shopping malls as springboard.
For ordinary Filipinos, however, the transition can be daunting. The reluctance primarily comes from the higher upfront costs when buying electric cars as well as the lack of charging infrastructure available.
According to ZigWheels, an international brand of India-based auto portal CarDekho, there are 11 electric car brands that are available in the Philippines versus 58 for cars that use diesel or gasoline.
The cheapest unit available is Clima Mobility’s Genius EV priced at half a million while the most expensive is Porsche’s Taycan—the luxury brand’s take on an electric car currently being sold at P9 million.
According to Ravelo, over 90 percent of EV charging happens at home or in the office, as electric cars can be filled up anywhere where there is a socket. EVs also have fewer moving parts that can break down and need maintenance compared with ICEs—98 percent fewer moving parts on average, in fact. Lastly, Ravelo says EVs have better torque that translates to almost instantaneous power delivery, even when climbing steep slopes.
It may take years before consumers are convinced to switch to cleaner forms of transport, but investors remain upbeat that as technologies improve and with more players entering the electric vehicle space, EVs will eventually dominate roads.
Tesla leads the pack, but several automotive companies also seem to believe that EV is the future of transportation as they continue to invest billions of dollars into developing their own lines of electric cars.
In 2020, even as global car sales slumped by 16 percent due to the COVID-19 crisis, the EV industry was able to sell a record 3 million cars, up by 40 percent from 2019. In 2021, sales skyrocketed by 108 percent, according to the International Energy Agency (IAE). Some analysts predict this 2022 may just be the EV industry’s “breakout” year.
For the Chamber of Automotive Manufacturers of the Philippines Inc., significant fiscal incentives are needed to bring down the cost of EVs, including policies that will boost consumer demand.
The proposed Electric Vehicle Industry Development Act seeks to create a road map to grow the local EV market but has yet to be enacted. But under the government’s third tranche of tax reform, perks are already set to be given to industry players.
Some analysts have also pointed out that the rise of electric cars may trigger another oil crisis, depending on how much oil demand it would displace over the years. (©Philippine Daily Inquirer 2021)
