It’s a tricky prediction, isn’t it? Deciding which power source will reign supreme in our local market, and even globally, is a bit like trying to catch smoke. Right now, the familiar rumble of internal combustion engines (ICEs) still dominates, both here in the Philippines and across the world. But those new energy vehicles (NEVs) are certainly making their presence felt.
You see, while the big players – from the US, Japan, Korea, and now China – are still churning out those trusty ICEs, they’re all dipping their toes, or sometimes diving headfirst, into NEVs. Remember, NEVs aren’t just electric vehicles (EVs); hybrids, combining ICEs and electric batteries, fall under that umbrella too.
Toyota, still the world’s leading manufacturer, is a prime example. They’re flooding the market, including ours, with hybrids. Being Japanese, they, along with their contemporaries like Mitsubishi, Honda, and Nissan, are treading carefully when it comes to jumping straight into EVs. European giants like Volkswagen are following a similar cautious route, seeing hybrids as a less risky path.
Unlike the Koreans, Kia and Hyundai, who are also focusing on hybrids, the Chinese are going all-in on electric. Just look at BYD’s skyrocketing EV production. While many Chinese carmakers here still offer ICE vehicles to cater to the current market, their electric ambitions are clear.
We do believe the days of the ICE are numbered. Oil supplies aren’t endless. However, we also understand that a sudden shift to full EVs in the Philippines is unlikely. Infrastructure challenges, like the lack of charging stations, and the high cost of EVs present significant hurdles.
This is where hybrids come in. We think this is where the real competition will heat up. With gas prices soaring and drivers becoming more environmentally conscious, “going green” and saving money are key considerations. Hybrids offer extended range, doubling what you can travel. If manufacturers can bring their prices down further, they’ll become incredibly tempting for buyers.
So, while the electric future gleams, the hybrid present seems poised to take center stage. The question is, can they make hybrids affordable and appealing enough to truly win over the Filipino driver?