There’s a big demand for EVs globally, but is our country keeping pace?
The world is clearly fast-tracking its push toward electric vehicles. And when we say ‘electric vehicles’, these are full-blown electric vehicles. Just last year, almost 14 million new electric vehicles were registered globally. There were 3.5 million more new EVs compared to 2022, amounting to a 35-percent year-on-year increase. As it stands, there are more than 40 million EVs plying our roads worldwide.
“In some of the countries in the world, out of their newly- registered vehicles every year, 50 percent are already pure EVs,” said Tesla Asian regional director, Isabel Fan, when they formally introduced their vehicles locally a month ago.
“That is really the best option moving forward,” she averred.
Truly, there’s a big global demand for EVs, but the big question is: Is our country keeping pace?
According to figures based from German online data-gathering platform, Statista, here in the country, from 2022 to 2023, EV units sold have jumped from 1,072 units to 10,602 units. These figures are expected to spike even further, particularly in the last part of 2024, from September to December.
Technically speaking, the jump from 2022’s number of 1,072 units to 2023’s 10,602 is exponentially big. Just do the math. And this is a good thing.
Even Electric Vehicle Association of the Philippines (EVAP) president, Edmund Araga has this to say: “There were a lot of factors that contributed to the growing number of electric vehicles in the country. There are many players now compared to before. Some even offer not just one electric vehicle but more than 10 EVs.”
However, when you look closely, no amount of gaslighting and sugar-coating can explain how miniscule this is compared to 2023’s overall total vehicle sales of 441,408 units. The number of EVs in 2023 only amounts to 2.5 percent of the overall vehicles sold locally that year. This is still even far from the targeted “10 percent EV share of the overall sales” of our industry leaders.
‘Range anxiety’
One of the factors that contribute to the slow and inadequate adoption of electric vehicles in the country is the perennial issue of “range anxiety”. Through the years, it has been pushing customers away from e-vehicles, especially those who have to travel outside the metro.
So far, there are only about 100-200 charging stations in the country.
Since last year, companies like Ayala Group through its subsidiary, ACMobility have been putting in gargantuan efforts to fill this cosmic void.
“Our goal is to provide value in the whole ecosystem, which includes building a new electric vehicle platform and providing people with different options that enable their mobility in life,” said Jaime Alfonso Zobel de Ayala, CEO of ACMobility.
It’s good to learn that big companies like this are putting in the effort. And according to President Ferdinand ‘Bong Bong’ Marcos, he’s dogged to have 66,500 charging stations by the end of this term in 2028.
Regression of some carmaker’s direction
Years ago, there was a bold move of bringing in full electric vehicles. Nissan Philippines did this with its Nissan Leaf. However, due to lackluster sales and poor demand in the market, the company opted to provide another technology–its own hybrid version in the ‘KICKS’ technology. And it has been doing well since then.
BYD, the world’s number one full electric vehicle giant, is–of course–known for its electric prowess. Being the global bestseller, it has sold 3.02 million pure EVs in 2023.
Locally, under Ayala’s wings, the Chinese carmaker has been a force to reckon with. Its own BYD Atto 3, as claimed, is the best-selling battery electric vehicle in its segment locally.
Recently–however–despite being known globally as the number one full electric vehicle player, BYD introduced its DMi technology, its own plug-in hybrid electric vehicle version.
As claimed, the BYD Super DM (Dual Mode) Technology represents a game-changing evolution in intelligent plug-in hybrid technology. Exclusively developed by BYD, it offers a multitude of benefits, including energy efficiency, low fuel consumption, driving performance, and comfort.
It was recently introduced with the launch of the BYD Seal 5 DMi, a Toyota Vios-fighter with the heart and spirit of a Toyota Altis Hybrid Electric Vehicle. It is said that the technology can reach a range of more than 1,000 km, with some DMi technologies in other countries claiming to reach more than 2,000 km. Not to mention the price of this vehicle starts only below P1M.
In fact, one local BYD representative during the BYD Seal 5’s launch in BGC, Taguig City even said: “It’s the perfect entry-level vehicle for first-time car buyers.”
“It’s perfect for people who still have qualms about full electric vehicles. Here, at least, there’s still a component for fuel that you don’t have to worry about range anxiety,” he even further divulged.
“For me, it would still take a while for Filipinos to embrace full EVs. For us, this, I believe, is the way to do it. It’s slowly introducing them to the world of electric vehicles.”
Sticking to their own guns
Other than the carmakers who have gone the full electric route, local auto giant, Toyota Motor Philippines, still stuck to their own guns of Hybrid Electric Vehicles. Now, the company’s hybrid vehicles constitute the lion’s share of more than 9,000 HEV units being sold locally this year.
Globally, the carmaker, also despite being the world’ biggest automotive player, is not heading toward the full electric direction.
“Total EV adoption is not the way forward,” said Toyota Global chairman, Akio Toyoda in a statement.
According to him, it will only constitute 30 percent of their total car sales.
New Energy Vehicles
Now, it’s not just full electrics. The direction ought to be “electrified”. This way, it’s all encompassing. A little bit confusing? Yes.
New Energy Vehicle is a term used in China to designate automobiles that are fully or predominantly powered by electric energy. This includes BEVs (battery electric vehicles), PHEVs (plug-in hybrid electric vehicles), and FCEV (fuel cell electric vehicles).
According to reports, the roadmap sets a 50 percent fleet share in the Philippines by 2040. In the short term (2023 to 2028), the target is to have 2.45 million electrified vehicles. This consists of cars, tricycles, motorcycles, buses and public utility vehicles.
The Department of Energy says that for cars, the targets are 415,000 Hybrid Electric Vehicles (HEVs), 69,000 Plug-in Hybrid electric vehicles (PHEVs) and 69,000 Battery Electric Vehicles (BEVs).
Not reaching 10% of overall car sales
It has long been an aspiration of the local automotive market to, at least, hit the 10% mark of the overall automotive sales when it comes to pure electric vehicles. This year, sadly, despite the exponential growth of pure EVs, the number will still not be met.
This is according to Chamber of Automotive Manufacturers of the Philippines, Inc. president, Rommel Gutierrez.
He said, in a statement, that HEVs are actually selling better than these pure EVs.
Moving forward
Moving forward, electric vehicles, with the number of other alternative energies popping up here and there, have evolved through the years. Despite the many facets involved, the bottom-line here is to lessen greenhouse gas emissions to better Mother Earth. Whether they be BEVs, HEVs, PHEVs or other forms of electrified transportation, they all have one purpose: a greener future.
Now, when it comes to answering the question of whether we are at pace with the rest of the world when it comes to full electrics, the answer is a big resounding “NO.”
But just like what Akio Toyoda said, full electrics compose only a parcel of their overall sales. And this, I believe, should also again be thoroughly thought through with the rest of the global market. Time to again go back to the drawing board?
