The Philippine market for electric vehicles (EVs) is expanding, but growth remains “nascent” due to persistent adoption barriers, according to a report by a consultant for the Asian Development Bank (ADB).
The Philippines is home to several local EV assemblers and abundant nickel reserves used in battery production. However, much of the EV value chain remains underdeveloped and import-dependent.
EV adoption is increasing among public utility vehicles, but high upfront costs, limited financing, expensive electricity and a lack of charging stations continue to hinder growth.
Accessible financing options for fleet electrification are notably lacking, particularly for companies and government entities without high initial capital to acquire new vehicles.
High electricity costs are also seen as contributing factors to the expenses of manufacturing, assembly, and charging infrastructure.
Public charging stations remain limited despite private sector interest. Industry players face difficulties in investing in charging infrastructure due to limited market data and a lack of clear policies and regulations on charging standards and registration.
“Reliable market data related to EV usage across a variety of vehicle segments is needed to address adoption barriers more effectively and tap into the most immediate opportunities,” the report said.
The report said that while the Philippines has laid the groundwork for an e-mobility transition, realizing its full potential will require “coordinated, inclusive action” among all sectors of society.
“By focusing on strategic policy enhancements and stronger implementation, market development, workforce training, and a strong commitment to just transition, the country can reap the benefits of sustainable and equitable transport while creating opportunities for all,” it said.
