OPINION

Incentives, infra key to powering EV sales

EVAP projects EV car sales to reach 35,000 by the end of the year and boldly targets to make EVs account for 50 percent of all vehicles on our roads by 2040.

Paul Anthony A. Isla

Electric vehicles (EV) and hybrids are no longer a thing of the future — they are gradually reshaping the automotive landscape of the country. While some motorists may still view them as niche or aspirational, these cleaner alternatives have started to gain traction, resulting in a rise in new car registrations.

At the opening of the recent 13th Philippine EV Summit, Edmund A. Araga, president of the Electric Vehicle Association of the Philippines (EVAP), shared Land Transportation Office data showing new electric vehicle (EV) registrations reached 29,715 from January to July this year — a significant increase over the 24,000 EVs registered in all of 2024.

EV registrations now account for five percent of all new vehicle registrations, which have tripled compared to 2023, with Chinese-made EVs, as well as legacy Japanese, American, and European car brands offering full EV or hybrid units competing against each other to capture a bigger slice of the market.

EVAP projects EV car sales to reach 35,000 by the end of the year and boldly targets to make EVs account for 50 percent of all vehicles on our roads by 2040.

While the target may sound ambitious, it is not impossible to achieve if incentives and perks are provided to encourage motorists to consider shifting to these modern and cleaner modes of transport. EV car dealers and distributors enjoy zero import duties, while owners are entitled to priority registration, exemption from number coding, and access to free public EV charging stations (EVCS) in malls and other commercial establishments.

The provision of fiscal incentives makes EV ownership more affordable by lowering costs and reducing operating expenses, particularly through fuel savings for hybrid vehicle users.

Additionally, the availability of infrastructure — such as EVCS, support systems, after sales programs, access to spare parts, and reliable battery warranties — plays a crucial role in influencing buyers’ decisions.

At present, there is an immediate need to increase the number of EVCS across the country. According to the Department of Energy, there are close to 1,200 charging points installed across the country. The DoE targets to grow this number and have close to 7,500 EVCS by 2028 and 20,400 by 2040.

While EVAP continues to encourage public and private sector collaboration to swiftly set up more charging stations, the DoE has mandated distribution utilities to factor the growth targets of EV sales and EVCS in their development plans and demand projections.

Certainly, EVs offer cleaner air, lower fuel costs, and fewer maintenance headaches — making them a smart, sustainable choice for Filipino drivers. With battery technology improving and the number of charging stations growing, EVs are becoming more practical and accessible than ever.

As a POLL STARTER, it is an opportune time to consider developing EVCS that incorporate the option of harnessing and generating electricity using solar technology. This approach would help regulate supply and demand during the daytime and reduce reliance on the main power grid.

Developing solar-powered EVCS not only supports the Philippines’ clean energy goals but also enhances the resilience of transportation systems, thereby paving the way clear to a cleaner future.