EDITORS DESK
At the recent launch of yet another luxury EV brand, Zeekr, the president of the company showed me a list of reservations for car models that were yet to be launched that evening. There were three models, each with a list of names and contact numbers, of at least 20 interested clients. Most intriguing was the fact that the event only launched two vehicles. The third, a luxury van (also the most expensive model), has yet to be officially launched later this year. However, it already has a reservation list 30 names long.
While EVs are not quite flooding the streets yet as many carmakers had hoped, they are, at the very least beginning to populate the more posh avenues of the city. Has the Toyota Land Cruiser finally been dethroned as the de-rigueur status symbol of the elite? Perhaps not yet, but it may be soon.
Why the shift?
The luxury EV is suddenly on more affluent buyers’ radar because of perks originally intended to encourage mass adoption. To woo consumers to make the change, the government has gladly granted EVs exemption from certain taxes and tariffs. They’re also exempt from number coding in major cities. In addition, registration after the first three years is also easier with EV vehicles allowed to take the priority lane for any LTO transactions.
The private sector has followed suit, with commercial developers providing EV charging spaces in their parking buildings. These spaces rival handicapped spots in terms of placement and convenience, often right in front of escalators, elevators, or main entrances to their malls. Pair priority parking with free charging and it’s no surprise these EV charging spaces are often full these days.
Finally, there’s the fact that these EVs are no slouches. Many of these new models boast of acceleration times rivaling sports cars at the same price or even costing more. Why buy a two-door, two-seater Ferrari when you can get an EV that’s nearly as fast but seats four to five people and at half the price?
They’re certainly not cheap vehicles. Most models with a battery large enough to rival a petrol vehicle now hover at the ₱3 million-₱5 million range. In a way, this is also a good thing. The price is also a statement as it ensures a bit of exclusivity to the discerning buyer.
Why not get the safe and reliable Toyota Land Cruiser priced at ₱5 million? Unlike that SUV with a one- to two-year waitlist, these EVs at the same price range are ready to be brought home within days of signing the paperwork. Indeed, the Land Cruiser may be a safer bet, but if it will take a year to arrive, is it even worth it?
The negligible risks
The regular car-buying folk like you and me have yet to embrace EVs simply because it’s such a drastic change from our usual routine with gasoline or diesel engines. Rather than simply filling up at the nearest station when low, EV owners, instead, have to know where the charging points are. There’s also the matter of charging at home. Those living in a condo with communal parking likely won’t have the luxury of a power outlet, yet these buyers likely have a three to four-car garage with an outlet at every slot.
Many buyers are wary of battery degradation, with many citing their experience with their mobile phones that barely last a day these days. Granted, the brands offer quite long battery warranties, from seven to as long as 10 years. Nonetheless, these more affluent buyers are not at all concerned. Even if the cars begin to show signs of reduced driving range because of battery age some four to five years down the line, they are already browsing for their next vehicle by that time, depreciation be damned.
What about unforeseen breakdowns or parts issues? Because this EV is likely their third or fourth car, a backup vehicle is usually ready and waiting. In the event of a breakdown, the EV becomes the tow truck’s problem.
Need to drive out of town? Back to the old reliable luxury SUV that runs on petrol. While in the city though, why contribute to the noise pollution when there’s a comfortable and quiet alternative?
History repeats
When we look back at our road to more sustainable vehicles, this shouldn’t come as a surprise. The hybrids that are more commonplace today were once the top-of-the-line models of the Lexus range back in the 2010s. These days, nearly all the Lexus models are hybrids, even the entry level trim versions. Does the improved fuel economy these hybrids offer really matter to high-net worth individuals? It likely doesn’t, but the massage chairs, Nappa leather, and high-end surround sound system that’s offered exclusively in these hybrids certainly does. And like today’s EVs, the sustainable aspect is not their selling point, it’s the head-turning factor, priority parking, and exclusivity that is.
(Iñigo S. Roces is the Motoring Editor of Manila Bulletin)