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Business

…As Philippine lags in EV development in ASEAN

Danessa Rivera - The Philippine Star

MANILA, Philippines — The Philippines remains a laggard in the Southeast Asian region in terms of electric vehicle (EV) adoption due to lack of supporting policies and incentives.

In a webinar hosted by the American Chamber of Commerce of the Philippines Inc. (AmCham), Electric Vehicle Association of the Philippines (EVAP) president Edmund Araga said the country lags behind its ASEAN neighbors in EV development.

“Thailand has been leading… The Philippines needs to be more aggressive should it intend to get the right pie. Policies, incentives need to be introduced now,” he said.

Araga expects households to take more time acquiring EVs due to their high cost.

“We project EV household uptake projections to be slow if no policy and incentives are in place. That’s why there is a need for supporting legislation to support demand in the commercial segment,” Araga said.

EVAP data showed the upfront cost of internal combustion engine (ICE) vehicles was significantly lower than plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).

For example, an ICE compact sedan costs less than P1 million versus a BEV which is worth over P2 million or a PHEV priced nearly P2 million in 2019.

EVAP, however, said the life cycle cost – which includes the vehicle, energy and maintenance costs – of an ICE vehicle is nearly the same level as  that of a BEV or PHEV.

Moreover, EVAP sees the life cycle of ICE cars  increasing  overtime to 2025 and 2030, while BEVs and PHEVs will have a downward trend over a five- and 10-year period – making it cheaper than the conventional vehicle.

Apart from declining costs, EV adoption in the country should be pushed in order to reduce the country’s oil importation, to mitigate greenhouse gas (GHG) emissions and to promote health benefits, Arada said.

In his presentation, Sen. Sherwin Gatchalian – author of Senate Bill 1382 or the Electric Vehicles and Charging Stations Act – said the country stands to save “as much as P290 billion in terms of annual oil importation” with the full transition of the country to EVs.

The country imports 97 percent of its oil requirements, mostly from the Middle East.

To raise demand for EVs, EVAP is pushing for a threshold of EV acquisition in corporate fleet, public transport and government vehicles.

For the corporate segment, the group said there should be a minimum five percent of EV requirement for logistic companies, food delivery companies, tour agencies, accommodation/hotels and utility companies.

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