IS THE PHILIPPINES

READY FOR ELECTRIC

VEHICLE ADOPTION A N D
DEPLOYMENTS? A CASE
ANALYSIS OF THE
SHIFTING FROM CIE TO
ELECTRIC VEHICLE.

ISRAEL, G E N N E L Y N L.
TABLE OF
CONTENTS
1 OVERVIEW
2 CHALLENGES
3 INTRODUCTION
4 CASE ANALYSIS
5 DISCUSSION
6 CONCLUSION
7 REFERENCES
 OVERVIE
This W
academic study examines the
Philippines' readiness for the adoption
and use of electric vehicles (EVs), with a
particular emphasis on the transition from
conventional internal combustion engine
(CIE) vehicles to EVs.
 CHALLENGES

Barriers and Drivers of Transition to Sustainable

Public Transport in the Philippines

According to survey findings, the primary obstacles to the

adoption of electric public transportation are economic
and technological. This includes high up-front and ongoing
costs, a lack of infrastructure for charging, problems with
driving range and use in various terrains, and the
accessibility of EV components and maintenance facilities.
Creating an EV ecosystem in the Philippines is also challenging,
and consumer uptake cannot increase in the current market
environment.

Low technology utilization and lack of infrastructure for EVs are

among the concerns of motorists, hampering the acceptance
of electric vehicle innovations in the Philippines. While the
intent to espouse more sustainable means of transport in the
country is present, the lack of proper incentives, financing
options, and EV model distribution systems in the Philippines
are not conducive for the EV market’s growth.
INTRODUCTION
The electrification of transportation, including passenger cars
and public utility vehicles (PUVs), is gaining momentum
globally. Electric vehicles (EVs) have the potential to reduce
greenhouse gas emissions and air pollution, particularly in
challenging sectors such as aviation, maritime
transportation, and heavy-duty road vehicles. In 2019, 2.1
million EVs were sold worldwide, accounting for 2.6% of
total automobile sales and experiencing a 40% year-over-
year growth. The market for EVs continues to expand with
advancements in technology for buses, lorries, and two-
and three-wheelers. EVs offer the potential to reduce air
pollution, decrease dependence on oil, and facilitate the
transition to a zero- emission transportation sector by
replacing combustion- powered vehicles.
In the Philippines, transportation—which includes road, rail, sea,
and aviation—is a crucial industry that connects population
and economic hubs across the islands. Road transportation is
the most widely used and predominant means of
transportation, even though aviation and sea transport are
essential for inter- island movement. The Jeepney, a
reconditioned American Jeep, is the most common PUV in the
nation, with about 270,000 franchised units on the road all
over the place. The tricycle, a classic three-wheeled rickshaw or
"tuk-tuk," is second, with 1.6 million units registered as
motorcycles and tricycles. Even though jeepneys and tricycles
are privately owned, they are categorized as PUVs in the
example country because they are open to the general public,
have set prices for each journey, and travel along
predetermined routes. In addition to this, there are also taxis,
buses, all-utility vehicles, and "pedicabs"—non-motorized
rickshaws .
 With the rapid growth in economic activities and urbanization,
the PUVs, along with private vehicles, exponentially increased
in numbers, which resulted in poorer air quality and frequent
traffic congestion in the cities. To address these problems, the
government of the Philippines implemented several policies
such as Clean Air which aims to maintain clean air that meets
the National Air Quality guidelines, and the PUV Modernization
Program (PUVMP) which replaces the old combustion vehicles
(c- PUVs) with more sustainable electric vehicles (e-PUVs).
EVAP president Edmund Araga said the
pandemic has further slowed down the growth 2019
of the local EV industry. Araga said
EV registration in the country dropped 35
percent
to 1,015 units from 1,570 units in 2019. For the 35%
past decade, total EV registration in the
country
reached 12,965 comprising of e-trikes, e-
motorcycles, e-jeepneys, and e-cars among 1,015 units
others.

The energy chief added that the DOE is

pursuing the project of deploying 20,000
imported EVs and putting up 5,000 EV charging
station for the next five years.
In the Philippines, various types of electric vehicles (EVs) are being
introduced and adopted.

Electric cars
(EVs)
In the Philippines, various types of electric vehicles (EVs) are being
introduced and adopted.

Electric Tricycles (E- Electric Jeepneys (E-

Trikes) Jeepneys)
 In the Philippines, various types of electric vehicles (EVs) are being
introduced and adopted.

Electric Electric Electric Bicycle

Scooter Motorcycle
ELECTRIC VEHICLE
LANDSCAPE I N
THE PHILIPPIES
THE UPHILL BATTLE FOR
EVS
Why has the Philippines been so slow to adapt? According to former
Philippine Institute for Development Studies (PIDS) supervising research
specialist Maureen Ane Rosellon, who recently wrote a paper titled
‘Clean Energy Technology in the Philippines: Case of the Electric Vehicle
Industry,’ there are numerous challenges plaguing the progress of EVs
in the country.

“[The growth of EVs in the country] faces relatively low technology

utilization, general concerns about the infrastructure, and strong
competition for investments,” Rosellon said during a PIDS webinar titled
‘Challenges and Prospects of the Philippine Electric Vehicle Industry.’
THE UPHILL BATTLE FOR
EVS
The infrastructure concerns are
perhaps more prominent in the
Philippines than in any other
country in the region. In 2019, the
Department of Trade and Industry
(DTI) noted that there were only 19
charging stations throughout the
country. Vietnam, in contrast, has
over400stations courtesy of
automotive startup Vinfast to
service the country’s 97 million
citizens.
WHAT CAN BE
DONE?
The country's potential involvement in EV production needs to be
investigated, according to Rafaelita Aldaba, undersecretary of the DTI
for the Competitiveness and Innovation Group.

"The automobile of the future will be shared, electric, driverless, and

linked. In order to establish autonomous vehicles and smart cities, e-
commerce and the future of delivery vehicles, and online mobility
platforms or ride-hailing applications, it is necessary to concentrate on
the Philippines, she said during the PIDS webinar.

According to the LTO, 6,783 electric tricycles and 4,260 electric

motorbikes were registered with the organization during the previous
ten years.
WILL THE PHILIPPINES EVER
EXPERIENCE ELECTRIC DREAMS?

According to Nissan's study, the

Philippines has the highest rate of
EV acceptance in the area (46% of
Filipino respondents stated they
would think about buying an EV
for
their next purchase). This
possibly a major factor is
Japanese automaker's decision in the
to
debut its iconic EV, the Leaf, to the
nation earlier this year.
In a separate 2019 survey performed in the Philippines by Rakuten
Insight, 20.26% of participants indicated they would buy an EV if the
cost of the vehicle were the same as one with an internal combustion
engine. 43.97% responded that they would still purchase one even if it
were more expensive.

For instance, the PUV Modernization Program has increased the

number of battery-powered vehicles on municipal roadways. A few
months ago, the Department of Energy approved the Board of
Investments (BOI) a five-year plan that calls for deploying 20,000
imported electric vehicles.

On the infrastructure front, there has been a noticeable number of

charging stations popping up since the DTI released its initial figure two
years ago. In the past few weeks alone, Metro Pacific Tollways
Corporation announced plans to install charging stations along the
Cavite-Laguna Expressway, while the Department of Science and
Technology opened new facilities in Quezon City.
WILL THE PHILIPPINES EVER
EXPERIENCE ELECTRIC DREAMS?
Currently, the government expects greener
developments in the field of transportation. According
to the DTI, there will be 6.6 million EVs on our roads by
2030, with local manufacturers producing 50% of
them. The total would consist of 2.7 million two-
wheelers, 300,000 three-wheelers, 70,000 lorries,
12,000 buses,
72,000 PUVs, and 70,000 UVs.

The government intends to have 21% of all vehicles on

the road running on electric power by 2030,
according to Evariste Cagatan, director of the BOI's
Manufacturing Industries Service, who gave a
presentation at the 2020 Electricle Vehicle Association
of the Philippines Summit. That percentage should
POWERING ADOPTION OF
ELECTRIC VEHICLES
According to Statista data, the average retail price of a liter of gas in the
Philippines increased by 36.9% in the first half of 2018 compared to
the same period in 2021, posing a significant challenge for the
transportation industry, one of the sectors the Marcos administration
prioritized for development.

The Philippine government has been encouraging the usage of electric

vehicles (EV) for more than ten years in an effort to improve the
sustainability of the nation's environment. To encourage the production
of EVs, the government issued Executive Order 488 in 2006. As a
result, the tariff rate for EV parts was effectively lowered, which
allowed EV manufacturers to import at a lower cost.
 MERALCO
DRIVING
SUSTAINABLE
GREEN
SOLUTIONS WITH
Meralco started its Green
RLC
Mobility Program two years
ago with the goal of
electrifying all of its fleet of
vehicles. The complete fleet of
Meralco's Metro Manila
Business Centers has
successfully converted beento
electric vehicles as of this

writing.
Additionally, a
universal outlet is
provided so that
EVs with
various
connector types
can use the
charging stations
with thei
onboard r

chargers
.
IMPLEMENTING INITIATIVES TO SUPPORT
ELECTRIC VEHICLE ADOPTION IN THE
PHILIPPINES

Industry and the government are working together to boost

the adoption of electric vehicles in the Philippines, and the
country's electric car market is still expanding. From the
standpoint of the energy sector, proposed legislation calls for
the Philippine Department of Energy (DOE) to develop an
Electric Vehicle Roadmap that would be incorporated into the
Philippine Energy Plan in order to create a complete
ecosystem that supports EVs. A charging infrastructure as
well as financial and non-financial incentives will be part of
it.
ELECTRIC VEHICLE INDUSTRY DEVELOPMENT
ACT (EVIDA)

An Act Providing for the Development of the Electric Vehicle

Industry, Republic Act No. 11697, the consolidated version of
Senate Bill No. 1382 and House Bill No. 10213, covers the
"manufacture, assembly, importation, construction,
installation, maintenance, trade and utilization, research and
stations and related equipment, parts and components,
batteries, and related support infrastructure."

The measure also provides the creation of a Comprehensive

Roadmap for the Electric Vehicle Industry (CREVI).
Incentives under EVIDA
EVIDA provides the following fiscal incentives:
The manufacture and assembly of EVs, charging stations, batteries
and parts and components thereof shall undergo an evaluation
process to determine its (i) inclusion in the strategic investment
priority plan and
(ii) possible entitlement to the incentives for the length of time as
provided under the amendments introduced by the Corporate
Recovery and Tax Incentives fo Enterprises Act or CREATE (R.A. No.
11534) to the Omnibus Investments Code of 1987 (Executive Order
No. 226) and National Internal Revenue Code of 1997 (R.A. No. 8424).
The importation of completely built EVs shall generally be entitled to
incentives under the TRAIN Act (R.A. No. 10963).
The importation of completely built charging stations shall be exempt
from the payment of duties for eight years from the effectivity of
EVIDA.
The utilization of battery EVs and hybrid-EVs shall be entitled to a
discount of 30% and 15%, respectively, from the payment of the
motor vehicle user's charge, vehicle registration and inspection fee
EVIDA also provides the following non-fiscal incentives:

Priority registration, priority renewal of registration and issuance of a

special type of vehicle plate.
Exemption from the mandatory unified vehicular volume reduction
program, number-coding scheme or other similar schemes
implemented by different government agencies.
Expeditious processing of applications and renewals for the
franchise to operate public utility vehicles for operators that are
exclusively utilizing EVs.
Expeditious processing by the Bureau of Customs of the importations
of EV manufacturers and importers.
Permit for foreign nationals to be employed under technology transfer
agreements, subject to the guidelines of the relevant government
agencies.
EVIDA introduces a Comprehensive Roadmap for the
Electric Vehicle Industry (CREVI)

The law establishes the CREVI, which is a national development

plan for the electric vehicle (EV) industry with an annual work
plan to accelerate the development, commercialization and
utilization of EVs in the country. The CREVI is comprised of four
components, as follows:

EVs and charging stations

component; Manufacturing
component;
Research and development component;
and Human resource development
component.
 LOCAL MANUFACTURING
AND ASSEMBLY
The government of the Philippines has stated a desire
to support homegrown EV assembly and
manufacture. This will not only lessen reliance on
imports but also open up job possibilities and help
the local car sector expand.
FACTS AND
FIGURES
Employment
FACTS A N D FIGURES

Market Outlook: 38,220 units in 2013 to 69,145 units in 2017

Domestic Sales in 2013: 214.2 Million
Potential Impact of replacing regular tricycles with 100,000 e-tricycles:
Department of Energy estimates gasoline consumption to be
reduced by 561,000 barrels a year or 260,000 tons of carbon dioxide
emissions Potential impact on tricycle drivers: 30%
increase in income due to increased passenger
capacity by 50% and 65% cheaper electric charging cost
compared to fuel rates
 POLICIES

IPP 2014-2016
The establishment of charging stations for electric vehicles is among the
preferred activities listed in the IPP. The charging stations could refer to a
‘service station’ designed to simultaneously fast charge multiple vehicles
similar to gasoline/diesel stations or a network of at least 5 charging
stands.

Application for registration must be accompanied by an endorsement

from the Department of Energy-Investment Promotion Office (DOE-IPO).
 POLICIES

EO 488, s. 2006.
Executive Order 488 modified the rates of import duty on components,
parts and accessories for the assembly of hybrid, electric, flexible fuel and
compressed natural gas motor vehicles to zero rate.
 POLICIES
PNS for Electric Vehicles
There are Philippine National Standards for electric vehicles.

PNS ISO 6469-1:2008 Electric road vehicles – Safety specifications – Part 1: On-
board electrical energy storage

PNS ISO 6469-2:2008 Electric road vehicles – Safety specifications – Part

2: Functional safety means and protection against failures

PNS ISO 6469-3:2008 Electric road vehicles – Safety specifications – Part

3: Protection of persons against electric hazards
 POLICIES

PNS ISO 8713:2008 Electric road vehicles – Vocabulary ISO published in 2005

PNS ISO 8714:2008 Electric road vehicles – Reference energy consumption

and range – Test Procedures for passenger cars and light commercial
vehicles

PNS ISO 8715:2008 Electric road vehicles – Road operating characteristics

PNS ISO 23274:2008 Hybrid-electric road vehicles – Exhaust emissions and

fuel consumption measurements – Non externally chargeable vehicles
CASE
ANALYSIS
 ELECTRIFICATION OF PUBLIC TRANSPORT
—OPPORTUNITIES AND CHALLENGES

Electrification of public transport, in

combination with electricity
from renewable production
energy sources, is an
essential part of improving the
environmental profile of a
transportation system. The public
transition
towards sustainable transportation
provides several benefits including CO2
emission reduction, increase in energy
efficiency, improvement of air quality, and
the integration of different energy sectors
. Large-scale deployment of EVs is
expected to reduce CO2 emissions from
both transportation and electricity
sectors
The electrification of tricycle and jeepney fleets in the Philippines
could cut localized PUV emissions by 85%, from 14.98-21.23 Mt CO2
eq/year to 2.23-3.13 Mt CO2 eq/year.

In the Philippines, electrifying PUVs will result in average reductions

in PM, NOx, sulfur oxides (Sox), and CO emissions of 96%, 82%, 59%,
and 93%, respectively. According to Agaton et al., they are
somewhat greater than in other research since the country's
conventional PUVs are less energy-efficient, in poor condition, and
smoke producers. The study also emphasized that substantial air
quality improvements can lessen health risks associated with
pollution from public transportation, such as those associated with
ischemic heart disease, stroke, lung cancer, chronic obstructive
pulmonary disease, and acute lower respiratory infections.

Despite the environmental and economic benefits, the electrification

of public transport is challenged by various factors.
 CREATING AN EV
ECOSYSTEM
The absence of a public charging infrastructure, in addition to the high
cost of purchase and maintenance, prevents road users from switching
to electric vehicles.

Wyntron, Inc. has received a $20 million loan from the Asian
Development Bank (ADB) to manufacture EV charging equipment there.
The business, which is interested in manufacture electronics,
aerospace, and telecommunications equipment, is a member of the
Danam Group in the Republic of Korea. domestic and commercial use,
Wyntron is increasing its production capacity in the Cavite Industrial
Park in the south of Manila. The stations will have EV charging
equipment with bi-directional features that allow a charged car battery
to supply power to the home grid through the charger. They will be
able to charge EVs overnight or for four to six hours.
LESSONS FROM
SUCCESSFUL EV
TRANSITIONS IN OTHER
COUNTRIES
a. Norway offered a variety of incentives, including sizable tax
exemptions, toll savings, and free parking for EVs. a.
Incentives and Policy Support. A comprehensive plan to build
the charging infrastructure and standards for zero-emission
vehicles has been important in promoting EV adoption.

b. With long-term planning and a clear vision, Norway was

able to shift to electric vehicles. To provide stability and
certainty for the EV market, the government established
challenging goals and continually worked toward achieving
them.
NORWAY
c. Norway heavily invested in building a solid network of
charging infrastructure, which includes fast chargers along
main thoroughfares, in urban areas, and at businesses. For EV
owners, this infrastructure improvement has reduced range
anxiety and enhanced convenience.
a. Integration of Renewable Energy: The widespread use of
renewable energy in Iceland, particularly geothermal and
hydroelectric electricity, has aided the country's move toward
electric vehicles. The availability of cheap and clean electricity
has increased customer interest in EV ownership and use.

b. Iceland developed several incentives and laws to promote

the use of electric vehicles. These include tax breaks,
ICELAND
decreased registration costs, and cheaper charging rates.
Access to bus lanes and cheap parking for EVs also
encouraged their use.
c. Public Charging Infrastructure: To reduce range anxiety and
improve the convenience of EV ownership, Iceland
concentrated on developing a strong public charging
infrastructure network.
Fast-charging stations were installed nationally by the
government in collaboration with private businesses, with an
emphasis on urban regions and key transport corridors.

d. Collaboration: Governm ent, energy providers,

ICELAND
local
governments, and other stakeholders have all worked together
to help Iceland transition to EVs. These collaborations made it
easier to plan and carry out policies, build infrastructure, and
launch awareness campaigns.
a. Swedish authorities created a long-term policy framework
that gave the EV market stability and certainty. The government
established specific objectives for EV adoption, including the
intention of eliminating fossil fuels from the transportation
sector by 2030. A favorable climate for investment and
innovation in the EV sector is created by this long-term vision
and commitment.

b. Sweden implemented several financial incentives to promote

the use of EVs. There are also lower road taxes, exemptions
SW EDEN
from congestion tolls, and considerable grants and incentives
for the purchase of electric vehicles. Financial incentives have
been a key factor in lowering the price of EVs and increasing
their customer appeal.
c. Investment in Charging Infrastructure: To facilitate the expansion of
EVs, Sweden has made significant investments in a network of extensive
charging infrastructure. The government set up a vast network of
charging stations, including fast chargers along main thoroughfares and
in urban areas, in partnership with municipalities and private businesses.

d. Public-business Cooperation: Strong cooperation between the public

and business sectors is credited for Sweden's successful EV transition. To
provide integrated solutions, the government collaborated closely
with
automakers, energy providers, and companies that offer the
infrastructure for charging. Public-private partnerships have supported
innovation, made sure that the infrastructure is available, and addressed
issues in the EV ecosystem.
SW EDEN
e. Education and Public Awareness: Sweden concentrated on educating
and publicizing the advantages of EVs. Public awareness campaigns,
information sharing, and educational initiatives have helped to alter
attitudes and opinions about EVs. Consumer acceptance and adoption of
EV technology have been greatly aided by raising public awareness of
its environmental advantages and economic savings.
DISCUSSION
The infrastructure for charging stations already in place in the Philippines
is one of the significant variables affecting readiness for EV adoption.
For EV owners to confidently operate their vehicles, charging
infrastructure must be accessible and readily available. Public charging
stations still need better supply in the Philippines, mainly in rural areas.
To reduce range anxiety and guarantee easy access to charging stations,
the public and private sectors must work together and invest in
constructing a reliable charging infrastructure network.

The adoption of electric vehicles is significantly influenced by financial

factors as well. Compared to conventional vehicles, the upfront cost of
EVs
—including batteries—remains comparatively high. For those considering
an EV, affordability is a top concern, and the availability of financial
incentives and subsidies can significantly impact their choice. Introducing
enticing financial incentives, such as tax reductions, decreased
registration costs, and reasonable financing choices, can increase
consumer access to and the financial viability of EVs.
In addition, policy support is essential for fostering an atmosphere that
facilitates EV adoption. The Philippine government has started the
process by putting EV taxi and tricycle pilot programs into place.
Comprehensive and long-term policies that support the switch to EVs
are nevertheless required. These regulations for EV charging
infrastructure, pollution requirements, and financial incentives for EV
production and R&D should all be part of these programs. A clear and
consistent policy framework may offer stability and certainty for all
parties involved, promoting investment and innovation in the EV sector.

The adoption of EVs is also influenced by consumer awareness and

education. Many Filipinos may need to be made aware of the advantages
and capabilities of EVs. Through focused advertising and educational
initiatives, we may assist in removing barriers and debunk myths by
increasing understanding of EVs' environmental benefits, financial
savings, and performance capabilities. Additionally, allowing them to test
drive and see a demonstration can help them allay their fears and see
the advantages firsthand.
The Philippines can promote EV adoption by leveraging its dedication to
sustainable development and capitalizing on renewable energy resources.
Geothermal and hydroelectric power are two plentiful renewable energy
sources the nation has, which is advantageous for supplying EVs with
clean energy. Thanks to its alignment with a low-carbon future, the
Philippines is now positioned as a potential regional leader in EV uptake
and deployment.

In conclusion, the Philippines has chances to promote the adoption and

deployment of EVs despite hurdles concerning the infrastructure for
charging, pricing, legislative support, and consumer awareness. The
nation can overcome these obstacles and build an ecosystem that
encourages the broad use of EVs by working with the private sector, the
government, and other stakeholders. The Philippines can aid in lowering
greenhouse gas emissions, increasing air quality, and developing a
reliable and effective transportation system for the future with the
correct infrastructure, laws, financial incentives, and awareness
programs.
CONCLUSION
The case study of the Philippines' transition from conventional internal
combustion engine (CIE) vehicles to electric vehicles (EVs) highlights
crucial questions concerning the nation's readiness for EV adoption and
deployment. Although many obstacles and problems must be
overcome, there are also exciting opportunities that can aid in a
smooth transition.

With initiatives like the introduction of e-jeepneys and the development

of pilot programs for EV taxis and tricycles, the Philippines has made
strides in embracing EVs. These initiatives reveal an increasing
understanding of the potential advantages of EVs in terms of lowering
greenhouse gas emissions, enhancing air quality, and reducing
dependency on fossil fuels.

However, several obstacles must be addressed before EVs may be

widely used in the Philippines. These difficulties include the need for
more charging infrastructure, the high initial cost of EVs, and the
requirement for encouraging laws and incentives. Government,
business, and other stakeholders must work together to address these
issues to establish charging infrastructure, offer financial incentives,
Lessons from other nations' successful EV transitions, such as
those in China, Norway, and the Netherlands, can benefit the
Philippines. These lessons emphasize the value of long-term
planning, monetary incentives, investments in infrastructure for
charging, public-private partnerships, and campaigns for
education and awareness.

The Philippines has the potential to hasten EV adoption and

deployment with the correct regulations, incentives, and
infrastructure development. By encouraging the creation of a
domestic EV industry, the switch to EVs can promote economic
growth while lowering carbon emissions, improving air quality,
and helping the nation achieve its sustainable development goals.
However, a thorough and methodical approach is required to
guarantee the successful integration of EVs into the
transportation sector. It means attending to technological,
economic, social, and regulatory issues while considering the
particular traits and requirements of the Philippines.

The Philippines has the chance to capitalize on its dedication to

sustainable development and embrace the change toward EV
adoption and deployments, although there are many
difficulties. The nation can pave the road for a sustainable and
environmentally friendly future in transportation with strategic
planning, strong policies, and cooperation among
stakeholders.
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