The domestic electric vehicles (EV) market is expected to grow a conservative 30 percent on strong adoption by motorists amid the influx of new models at relatively affordable price range.

Patrick T. Aquino, director at the Department of Energy Utilization Management Bureau (EUMB), said during a press conference Wednesday, Aug. 16 for the 11th PEVS with the theme “Plug-In and Accelerate” to be held from October 19 to 21, that the industry is seen growing 30 percent annually, but the private sector led by the EV Association of the Philippines (EVAP) said the government target was conservative.

“We're looking at the possibility of having electric vehicles annually growing 30 percent,” said Aquino, citing the 9,666-unit registered EVs last year.

Broken down, the EVs comprised largely of 8,100 motorcycles and etrikes, 1,160 sports utility vehicles, and 347 cars or sedans based on the Land Transportation Office data.

But EVAP Chairman Emeritus Ferdinand Raquelsantos and Chairman Rommel Juan were both in agreement that the local EV sector has the capability to grow more than the 30 percent target.

EVAP data showed that they are projecting a total of 6,616,750 EV stock in the country by 2030 with two-wheelers accounting for the bulk of 83.12 percent followed by passenger cars with 5.29 percent.

Antonio “Toti” Zara III, president and CEO of BYD Philippines, said that its partnership as distributor of BYD, the world’s largest EV manufacturer, is expected to boost sales of AC Motors, the automotive arm of the Ayala Group.

Zara attributed this to the lifting of the 30 percent import duties on their EVs and the exemption from the excise tax.

Dax Avenido, general communications chief at Nissan Philippines Inc., added that the removal of the import duty has significantly brought down the price of Nissan Leaf from P2.6 million to P1.9 million now.

In addition, Aquino noted that of the 44 EV brands globally, some of which have already entered into the country. EVAP data showed there are at least 16 EV models in the country, comprising of sedans and SUVs.

Government vehicle purchases are also being rapidly shifted to EV that by 2030, all agency vehicles should all be green mobility.

Among ASEAN countries, the Philippines ranked fourth in terms of sales with Indonesia at the top followed by Thailand, and Vietnam.

The government is also accelerating the roll-out of EV charging stations. As of November 2022, there are only 900 units of EV chargers in the country but the target is to build this up to 10,000 units by 2025.

“We are so excited,” said Juan noting that their association started with nothing 16 years ago to a vibrant sector at present.

This could mainly be attributed to the implementation of the Electric Vehicle Industry Development Act (EVIDA) or the Republic Act No. 11697, which lapsed to become a law in April 2022 and enacted in May 2022, with implementing rules and regulations taking effect in September 2022.

EVIDA incentivizes EV adoption nationwide—through allocating dedicated parking slots in establishments, assigning green routes across cities and municipalities, and exempting the vehicles from traffic coding schemes, among other perks. Public and private sectors have also been working to make charging stations more conveniently accessible to EV owners.

“Implementation remains a big challenge as it involves extensive output and promotion,” said EVAP President Edmund Araga. “The EV industry is still making necessary adjustments in terms of supplies and infrastructures. Transitions are on the way in terms of regulations being set by different government agencies involved,” he said.

Araga also pointed out that currently, the Department of Energy (DOE) is setting the pace in the government sector through rolling out necessary programs especially those aligned with the law pertaining to renewable energy sources. “Such initiatives are related to the development of local EV infrastructures. One I can cite is the e-App program that maps out locations of active EV charging stations across the country,” Araga explained.

He also cited DOE for the ongoing development of the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), which comes with inter-agency support. The department is also facilitating public consultations regarding the Vehicle Fuel Economy Labeling Program (VFELP) and the Fuel Economy Performance Rating (FEPR).