E-vehicle makers target 11-13% annual growth

MANILA, Philippines - The Electric Vehicle Association of the Philippines (EVAP) aims to grow the local production of electric vehicles by an average of 11 to 13 percent per year to reach 69,145 units by 2017 from 38,3220 units this year as it seeks to promote the use of eco-friendly vehicles in the country.

EVAP executive director Roberto Cruz said during the presentation of the industry roadmap at the Board of Investments yesterday, the group expects the local production of EVs to rise given current efforts to promote the use of such vehicles here.

He noted that the Asian Development Bank (ADB) and Department of Energy (DOE) are undertaking a project which involves the rollout of 100,000 electric tricycles to local government units under a rent-to-own scheme.

Aside from the ADB and DOE’s e-trike project, the EVAP also sees opportunity to increase local production of EVs, citing refleeting programs.

Of the estimated EV production, tricycles and motorcycles are expected to account for the bulk or 66.8 percent

“Our target is to promote the EVs or e-trikes first,” he said.

The projected increase in domestic production of EVs is expected to translate to higher sales.

By 2016, the EVAP expects domestic EV sales to reach P4.44 billion from P214.2 million this year.

While there are opportunities to expand EV production and sales, Cruz said challenges remain such as lack of infrastructure and financing to acquire EVs.

“Financing is a really big factor because the acquisition cost of EVs is quite high,” he said.

To encourage the use of EVs, he said the government needs to strengthen the automotive industry environment by providing incentives to industry players to bring down the price of such vehicles.

Addressing supply chain gaps by providing measures to expand the local parts production base and developing programs to support financing schemes for purchase of locally-produced vehicles are also needed.