When it comes to buying electric cars, the domestic market has yet to get a jolt.
But signs indicate more people are willing to electrify. Which, despite the Philippines’ slow EV adoption pace, reflects the global trend.
The International Energy Agency (IEA), in its Global EV Outlook 2024 report, estimates EVs will comprise around 20% of the total vehicle deliveries worldwide this year. This equates to 17 million vehicles, according to the independent organization whose country members and associates represent a third of global energy demand.
IEA’s figures are higher than the 13-million-plus sales and 16% share for 2024 projected late last year by S&P Mobility — which at the time noted that, amid fluctuations in global EV adoption rates, “reports of the demise of EVs are greatly exaggerated.”
Well, in the first six months of the year more than seven million EVs were sold worldwide, a 20% jump from the same stretch last year, according to UK-based intelligence firm Rho Motion. This means that if the IEA’s 2024 forecast were to be proven correct, then we can only expect EV deliveries to pick up pace in the months ahead.
This is significant for automakers, especially those which have trumpeted aggressive net zero emission goal timelines. Adding more pressure on them are legislation rolled out by major economies that have set ambitious environmental targets meant to be hit starting at the end of this decade. Electrification — counting in full-electrics and various forms of hybrid propulsion — may not be the only way to pursue these, but it is a huge step in that direction (a topic for another column).
Now, while seeing continued growth for electrified cars in China, the US, and Europe — the three largest markets for these vehicles — the IEA also notes the “increasing momentum” of EV adoption in ASEAN. It cited the progress in Thailand in particular, where electric cars accounted for 10% of all vehicles sold in the country last year.
An article recently published by market research company Frost & Sullivan supports this, pointing out EV deliveries were quite brisk last year in most of the region’s main auto markets, namely Thailand, Indonesia, Vietnam, Malaysia and the Philippines. Deliveries of full-electric cars in Thailand jumped 684%, 277% in Malaysia.
For the Philippines, the expansion is nearly nine times over that recorded in 2022 (coming from a low base figure, though). The domestic market took in 10,602 electrified vehicles last year, according to the BOI, which referred to local auto industry groups as its source for the data.
But included in the Philippines’ 2023 EV tally were 462 full-electric models only. Hybrids, counting in so-called mild hybrids that may not be capable of running on electric power alone, comprised the bulk with 9,239 units sold. Plug-in hybrids accounted for 106 units.
With total vehicle sales in the country reaching 429,807 units in 2023, EVs (hybrids and all sorts of similar renditions included) took just 2.46% of the share. But if sales figures available from the region can be relied on, then the share of EVs in the Philippines’ total number of vehicle deliveries last year is comparable to that of neighboring major auto markets.
Of course, Thailand’s abovementioned 10% EV share in total vehicle sales takes the lead by quite some margin. And note, too, that this share represents a staggering 77,000-plus full-electric models — not hybrids.
Now while the Philippines is still far off this mark, acceptance for electrified vehicles is marginally rising among car buyers.
The 2024 Global Automotive Consumer Study for Southeast Asia, published by professional services firm Deloitte, shows 66% of people polled in the Philippines will still prefer an internal combustion engine (ICE) car for their next purchase. But, notably, this marks a drop in the report’s finding for 2023 that saw 72% of those surveyed preferring an ICE.
In contrast, those who collectively said they are likely to buy an EV (whether hybrid or full-electric) next time around have risen from 25% in 2023 to 30% in this year’s study. Among them, 4% said they want a full-electric model. In the 2023 poll, only 2% were considering one.
Consumers who collectively said they prefer a hybrid as their next car also increased from 23% to 26% in this year’s report. The jump is highest among those who want a self-charging hybrid (as opposed to a plug-in hybrid), which rose from 13% to 18%.
The Electric Vehicle Association of the Philippines reports the same trend. Its president, Edmund Araga, said: “More local consumers are now aware, and are considering an EV for their next vehicle purchase.”
He noted that the rising confidence on electrified models can be attributed to current regulations and standards governing the sector, as well as the “wide array” of financing options now available to consumers.
Certainly, the perks accorded by law to EV users (exemption from number-coding schemes, preferential parking and free charging in some venues), as well as the lower operating costs of driving an EV, have helped spur consumer interest. The government’s tariff exemption for electrified models has also priced these vehicles comparably to their ICE counterparts.
With an increasing number of consumers willing to electrify, manufacturers are motivated to offer more models — if not entice other carmakers to enter the country altogether. This encourages companies to venture into or expand the ecosystem (destination charging facilities, alternative home setups, third-party suppliers, etc.) supporting EVs. For some corporations, embracing electrification makes business and social responsibility sense as well because this raises their corporate ecological conscientiousness score.
Of course, a better understanding of (and less misinformation about) EVs may help drive more consumers to charge ahead. And, hardly a shock, this.
