The adoption of electric vehicles in the Philippines is gaining momentum, supported by increased investments from public and private entities. The Philippine government has also launched several initiatives to support the transition from fossil fuels.
In our latest Consumer Report Philippines 2023, we surveyed over 1,000 Filipinos in January 2023, offers rich insights into their habits, preferences, and perspectives on a variety of industry topics, including electric vehicles in the Philippines. For brand managers and marketers, the insights from our study reveal a promising opportunity to position their products and services in the emerging and potentially lucrative market of electric cars in the Philippines. Read on to uncover the findings from our study.
Leading Modes of Transportation in the Philippines
In the Philippines, public transportation is still the main mode of transportation utilized by citizens. This includes buses, jeepneys, taxis, and a variety of other forms of mass transit. While there are many private vehicles in the country, particularly in more affluent areas, public transport is still seen as the most practical and cost-effective option for getting around. Indeed, in our study, about 59.5% of Filipino citizens travel by public transportation.
The NCR region, in particular, has the highest population density in the country, so it’s no wonder that its residents rely heavily on public transit. In the same study, we also found that 73.0% of NCR citizens prefer taking public transport as their primary means of commuting. Buses and other forms of mass transit are generally considered safer than motorcycles and have proven to be a reliable form of transportation.
Aside from public transport, motorcycle usage has also been steadily increasing over recent years. 14.5% of Filipinos have taken to riding motorcycles as an alternative transport. This could be attributed to their affordability compared to cars and other private vehicles, as well as their agility, making it easier to navigate tight roads and crowded streets. Their popularity has become especially evident in cities like Manila, where roads are heavily congested, and parking can be costly or challenging.
The Department of Transportation (DOTr) recently launched a multi-year modernization program for public transportation throughout the country. The aim is to improve safety standards, technology, and infrastructure on buses and jeepneys across all regions to make them more efficient and cause less traffic congestion. There are plans to extend the Metro Manila subway system and new high-speed rail lines connecting urban centers with rural areas throughout the nation. These initiatives are likely to help further increase the popularity of public transportation in the Philippines and reduce reliance on private vehicles for daily commutes.
The Rise of Electric Vehicles in the Philippines
Attitudes Towards Electric Vehicles in the Philippines
When it comes to electric vehicles in the Philippines, there is a notable positive attitude towards considering them as a preferred transportation option. According to the survey, 50.8% of respondents somewhat agreed that electric vehicles are the future of the automotive industry, while a further 42.8% completely agreed with this statement. This widespread acceptance of electric vehicles in the Philippines is encouraging news for the transportation sector in the country.
Men were found to have a higher acceptance rate than women. 50.8% of male respondents completely agreed, while only 33.3% of female respondents shared the same sentiment. This indicates a gender gap in the acceptance of electric vehicles in the Philippines as a transportation option.
How many electric vehicles are in the Philippines?
In 2018, there were about 7,000 registered EVs for local use in the country, according to the Land Transportation Office (LTO). This number is expected to rise as forecasted by the Electric Vehicle Association of the Philippines (EVAP) during the 11th Philippine Electric Vehicle Summit (PEVS) 2023, wherein they predict that over 6.6 million electric vehicles will be on the streets of the Philippines by 2030.
Of the estimated 6.6 million electric vehicles, over half of them will be two-wheelers, or about 3.6 million electric motorcycles, according to EVAP chairman emeritus Ferdinand Raquelsantos. This highlights the prominence of motorcyles in Philippine commutes and transportation. Meanwhile,private electric cars will account for 5% of the total market share, or 300,000 units, from now until 2030, based on current sales trends.
Leading the charge in electric vehicles in the country are renowned brands such as Hyundai, Audi, Lexus, Mazda, and Nissan. Additionally, GWM, a Chinese automotive company, is gradually carving out a niche in the market for electric cars in the Philippines. The GWM Haval Jolion HEV DHT Supreme stands out as a sought-after model, with retail starting from PHP 1,588,000.
Filipinos also have the option of exploring dealerships that offer electric vehicle brands not directly distributed by the manufacturers themselves, like the website www.electriccars.ph, which even provides access to EVs ranging from Rivians to Tesla vehicles.
Electric & Hybrid Vehicles Available in the Philippines [Google Sheet]
Access the Google Sheets list of EVs available in the Philippines in 2023.
An Affordable Alternative
Likewise, the popularity of small, inexpensive electric cars from China in the Philippines is rising. These Chinese EVs are often found on platforms like Alibaba, with some models as cheap as $1,200 or Php 58,090, but they usually require bulk purchasing. The actual cost to consumers would be higher due to shipping, taxes, and retailer markups, possibly reaching Php 150,000 to Php 200,000.
While cheap, these EVs are typically cramped two-seaters and may not come from established car manufacturers, raising concerns about quality and reliability. Moreover, there are warnings about potential scams and the risk of the Chinese EV industry being underdeveloped. Consumers might instead want to consider second-hand vehicles or wait for more reputable Chinese car brands to enter the market. They should be cautious with the current offerings of Chinese electric cars.
The Philippine Government’s Drive for Electric Vehicles
The electric vehicle (EV) industry in the Philippines is experiencing growth, and the government has implemented various incentives and actions to support its development. The Electric Vehicle Industry Development Act (EVIDA Law) enacted in 2022 provides a framework for EV operation, aiming to reduce dependence on fossil fuels and combat rising fuel prices.
The law requires evaluation of various aspects related to EVs, including charging stations, batteries, parts, components, and related infrastructure like research centers, training centers, testing facilities, and waste treatment facilities. This evaluation determines whether these elements should be included in the country’s Strategic Investment Priority Plan (SIPP) and if they qualify for incentives provided by tax codes. If an EV-related industry is included in the SIPP, it can receive incentives including income tax holidays, reduced corporate income tax rates, enhanced deductions, and duty exemptions.
With such forward-thinking attitudes and public policies in place, electric vehicles in the Philippines will likely continue to grow in popularity in the coming years.
Vehicle Purchasing Channels
In the Philippines, vehicle purchasing channels range from traditional physical dealerships to modern online platforms. This offers Filipino consumers a wide range of options when buying a new car or motorcycle. According to the same survey, 61.9% of respondents are likely to purchase their new vehicle online from a verified dealership or platform, with male respondents (67.0%) being more likely to do so than female respondents (55.9%).
On the other hand, 29.3% of all respondents indicated that they are not very likely to purchase their vehicles online. Despite this, the convenience and lower cost of online shopping continue to be an attractive option for many Filipinos looking for their ideal vehicle purchase experience.
Vehicle Purchasing Preferences
The vehicle purchasing preferences of the Philippines are increasingly leaning towards more eco-friendly options. According to the survey, hybrid cars in the Philippines remain the top choice among respondents, with 26.0% saying they use them, followed by diesel vehicles at 22.6%, and fully electric vehicles at 21.7%.
There is a noticeable gender gap in these results, as 28.2% of male respondents prefer hybrid vehicles, while 28.3% of female respondents prefer diesel vehicles for their transportation needs. The rise in awareness of environmental benefits associated with these alternative transportation options has likely been a driving factor in this trend.
More and more citizens are now turning to hybrid and electric vehicle options for their daily commute to reduce their carbon footprint on the environment. This shift in preference is seen particularly amongst younger people, who tend to be more conscious of sustainability and environmental issues than previous generations were.
Similarly, it becomes evident that major industry players are actively pushing for electric cars, making significant investments in marketing to promote their electric models. This is particularly true on online platforms like Facebook, Instagram, and YouTube. Additionally, they are making efforts to educate consumers about electric models, which not only benefits their brand but also contributes to the advancement of the entire category.
Key Takeaways
In conclusion, the Philippines is a country that highly favors public transportation as its primary mode of travel. They have a positive attitude towards electric vehicles and are willing to purchase them online from verified dealerships or platforms, taking the review behind the wheel into the digital realm. Regarding purchasing preferences, hybrid vehicles are still the top choice, followed by diesel and fully electric vehicles. Despite this, fully electric vehicles in the Philippines are slowly gaining popularity in the market.
Access valuable consumer insights in the country through our comprehensive Market Research Philippines services. Make confident and informed decisions effortlessly with our quality-driven methodology. Our solutions are designed to help you gain in-depth knowledge about what Filipino consumers feel and want, allowing you to uncover new opportunities and optimize your strategy.
