Asian auto firms eye e-vehicle production in Phl

MANILA, Philippines - At least four automotive companies from Taiwan, Japan and Korea engaged in the manufacture of electric vehicles (EVs) as well as relevant parts and technology are actively pursuing investment opportunities in the local industry, according to the Electric Vehicle Association of the Philippines (EVAP).

EVAP president Rommel Juan said these companies include: TECO Group from Taiwan, Moving Ecology from Japan and LS Group and S&T Group from Korea.

TECO, the third largest manufacturer of electric motors in the world, is exploring investment opportunities for the manufacture of motors for electric vehicles as well as whole units.

It currently has a manufacturing facility in Subic that produces magnetic contractors, thermal overload relay and circuit breakers.

LS Group is likewise considering a joint venture with a local firm for the manufacture of electric vehicles.

Juan said Moving Ecology is considering a partnership with a local firm for the development of technologies for electric vehicles.

S&T, meanwhile, is looking at investment opportunities in the country for the manufacture of electric scooters.

However, Juan declined to disclose the amount of investments being considered by the four firms because these are still under discussion.

During the 2nd Philippine Electric Vehicle Summit 2012 held at the Meralco Compound in Pasig City last month, Manila Electric Co. (Meralco) president and CEO Manuel V. Pangilinan said the company is willing to invest in manufacturing facilities for electric vehicles in the country.

“These companies have come back since the summit was held,” said Juan of the four firms.

He said EVAP is currently in talks with Meralco on the development of electric vehicles that will be “acceptable to the market in terms of design and price.”

Juan said that as far as local manufacturing is concerned, production would be concentrated on e-tricyles and e-jeepneys. Factory output will be for domestic consumption and also for export to Vietnam and Thailand.

“The prospects are bright,” said Juan.

Production or, possibly importation, of electric cars will be left to the big players in the automotive industry.

Since the electric vehicle summit was first held in 2010 to discuss the future of electric vehicles, e-tricyles have been plying the roads of Surigao City, as well as e-Jeeps in Makati. E-Bus units of Victory Liner have also been operational.

The industry is also awaiting the passage of the Alternative Fuel Vehicles Incentives Act of 2011 authored by Sen. Ralph Recto. The bill grants tax incentives for the manufacture, assembly, conversion, and importation of electric, hybrid and other vehicles that run on alternative energy sources.

Chamber of Automotive Manufacturers of the Philippines (CAMPI) president Rommel Gutierrez said due to the renewed interest in the development of an electric vehicle industry in the country, electric vehicles should be part of the automotive industry roadmap that is still in the works.

“There are efforts from some industry players in the industry advocating EVs. I understand there is also a pending bill in Senate which seeks to give incentives to alternative fuel vehicles such as hybrid vehicles and EVs. It may also make sense if EVs be made part of the automotive industry roadmap,” he said.

“These are positive steps towards preparing the industry for EVs. Its a matter of time that the local industry will be ready for EVs.”