The Electric Vehicle Association of the Philippines (EVAP) expects to breach the 6.6-million unit target for EV sales by 2030 on growing demand for cleaner mobility in the country.
EVAP President Edmund Araga said there are about 15,300 EVs running nationwide, including 354 electric motorcycles and 88 electric buses, as of end of 2023. EVAP forecasts the volume of EVs in the country to grow to about 6.6 million units by 2030.
Araga said they expect to surpass the 6.6-million unit sales target. Boosting EVAP’s confidence of breaching their target is the recent decision of the government to expand the coverage of the zero duty on imported EVs under Executive 12 to include hybrid EVs from only pure EVs.
Araga cited growing demand for cleaner vehicles in the country. EVAP is even supporting the first Auto Parts & Vehicles Expo Philippines will open from June 5 to 7, 2024 at the World Trade Center Metro Manila in Pasay.
In addition, EVAP cited the dynamic Philippine automotive parts sector, which runs through the operations of over 250 local businesses that are registered for producing and importing up to 330 types of auto parts and components, which in turn are made not just of metals but also of plastic, rubber, and other composite materials. Such enterprises supply items for original equipment manufacturers (OEMs) and independent aftermarket (IAM)--comprising the parts replacement market.
Based on data from the Asia-Pacific Economic Cooperation in 2020, the country’s automotive parts sector employs around 67,100 workers nationwide. Those employees work in manufacturers of automobile, motorcycles, and parts and of direct importers.
The Philippines’ auto parts sector is robustly growing along with the continuously growing automotive industry in the country. Logically, this is driven by the consistent growth in annual vehicle sales coupled with the inevitably rising demand for automotive aftermarket products and services.
Based on the latest available data, the total number of registered vehicles nationwide was about 13.9 million vehicles in 2022. That number is estimated to grow by about 5 percent to 7 percent annually (not including the equally steady growth in volume of unregistered vehicles).
Notably, the Land Transportation Office (LTO) reported that indicates an estimated total of unregistered vehicles in the country of 24.7 million vehicles. That accounts for a significant 65 percent of all motor vehicles in the country as of 2024.
According to the Chamber of Automotive Manufacturers of the Philippines, Inc (Campi), the Philippine vehicle industry could hit a record 500,000-unit sales mark in 2024, following the record new vehicle sales of 429,807 in 2023.
The 2023 overall sales figure was a milestone for the industry as it outpaced expectations and even the record sales pre-pandemic. In 2017, the industry posted record sales of 425,673 units.