TECH4GOOD
The deluge of motorcycles that started more than a decade ago may have changed the appearance of our streets, but if you look around today, you will not fail to notice something new. We are witnessing a transformative shift in our transportation landscape. Electric vehicles (EVs) and hybrids are increasingly populating our streets, driven by government initiatives, rising environmental awareness, and the entry of relatively affordable, high-quality models—many of which are made in China. This trend reflects global and local efforts to embrace sustainable mobility while highlighting the growing influence of Chinese automakers in the Philippine market.
Established players from Japan, Korea, North America, and Europe dominated the global automotive landscape for decades. These were the names we knew, the brands we aspired to own. However, the shift toward electrification has created a unique opportunity, a blank slate upon which new contenders are rapidly making their mark. China is leading this charge.
From just 426 units sold in 2022, the Electric Vehicle Association of the Philippines (EVAP) expects to sell 6.6 million e-vehicles by 2030. The signing of Executive Order No. 12 is driving the growth in e-vehicle adoption because it modifies the tariff rates for certain EV types and their parts and components to zero. EO 12 complements the Electric Vehicle Industry Development Act (EVIDA) or RA 11697, which mandates the development of the local EV industry.
The shift toward electric mobility aligns with the country’s broader environmental targets, such as reducing its greenhouse gas emissions by 75 percent by 2030 as part of its commitments under the Paris Agreement. The use of EVs will play a critical role in achieving this goal.
The increasing visibility of “Made in China” EVs and hybrids on our streets has several implications. It means a broader range of consumer choices, often at more accessible price points. This can accelerate the adoption of electric mobility, contributing to cleaner air and reduced reliance on fossil fuels. The competition introduced by these new players can also spur innovation among established automakers, ultimately benefiting consumers.
The rise of Chinese EV and hybrid brands worldwide is not a sudden phenomenon. It is the culmination of strategic government policies, massive investments in research and development, and a keen understanding of the evolving global market. While the West grappled with the initial complexities of EV technology and infrastructure, China was aggressively positioning itself as a leader in this transformative sector.
Several factors contribute to the growing popularity of Chinese-made vehicles in the Philippines, including affordability. Chinese automakers leverage cost-efficient production methods to offer competitively priced vehicles without compromising on quality or features. Many Chinese brands are at the forefront of EV innovation, offering advanced battery technologies, longer driving ranges, and innovative features like AI-assisted driving systems.
Despite its promising growth rate in the local market, the country’s EV ecosystem faces several challenges. One major one is the infrastructure gaps. The country has fewer than 1,000 charging stations nationwide; most are located in Metro Manila. This limits convenience for EV owners. Getting stranded on a provincial road during floods would be a significant problem. Many consumers are still unfamiliar with EV technology, which can significantly influence their buying decisions. Add the fact that EV vehicle purchase prices remain prohibitive for most Filipino car buyers.
The trend is undeniable. Our streets are indeed turning electric. The rapid adoption of electric vehicles marks a significant step toward sustainable transportation in the country. At the same time, Chinese automakers are reshaping the country's automotive landscape with their affordable yet innovative offerings, notwithstanding the ongoing geopolitical dynamics between the two countries.
While the established players will undoubtedly continue to evolve and compete, the rise of “Made in China” EVs and hybrids marks a significant turning point in the global automotive landscape. It’s a testament to China’s ambition, technological prowess, and strategic focus on the future of mobility. Their leadership in this sector could, however, change due to the evolving new world order driven by the bold economic policies of the Trump administration.
This trend is expected to grow stronger as more Filipinos embrace eco-friendly mobility solutions and infrastructure improves over time. Whether it's an e-jeepney cruising through Manila’s bustling streets or a sleek Chinese-made electric SUV parked outside a suburban home, one thing is clear: until a better innovation such as hydrogen-driven vehicles is made available, the future of transportation in the Philippines is electric—and it’s here to stay.
(The author is an executive member of the National Innovation Council, lead convener of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics and AI Association of the Philippines, and vice president of UP System Information Technology Foundation. Email: t4g.tmb@gmail.com)