In 2024, Tesla, the second-biggest electric vehicle manufacturer in the world, officially entered the Philippine market. Which begs the question, is the Philippines ready for electric vehicles (EVs)?
Donald Saurombe, Assistant Vice President of Business Development at MPT Mobility, weighs in on the Philippines’ readiness to adopt EVs and how it can change the mobility landscape in the country.
Where are we on our EV-adoption journey?
“I think we are about 50% ready if the readiness pertains to being largely a consumer nation for EVs and not being involved in the production and/or supply side,” Donald began. “Regulatory policies and market factors are significantly ahead since the government has already passed the EVIDA law which led to reductions of EV prices and establishment of supportive guidelines.”
Republic Act No. 11697 or the Electric Vehicle Industry Development Act (more commonly referred as “EVIDA Law”) aims to ensure that the Philippines is ready for EVs—from adoption and development of the vehicles and EV charging stations, incentives to help alleviate the higher upfront costs, to regulatory frameworks that should streamline all aspects of the transition. The EVIDA Law also highlights the sustainability of EVs, both in terms of utilization and environmental impact.
When asked about what contributes to the remaining 50% and how to overcome these, Donald explained that the main hurdles are the higher upfront cost and the so-called “range anxiety” brought by the limited public charging infrastructure in the country. He clarified, however, that the EVIDA Law already has guidelines that would help overcome these concerns.
“The EVIDA law and its IRR (implementing rules and regulations) indicate that 5% of parking spaces in buildings that have 20 or more parking spaces will need to be dedicated for EVs, and later on there will be a requirement to install EV chargers in those parking slots,” Donald detailed. “As for the higher upfront costs, fuel prices for Internal Combustion Engine (ICE) vehicles are already at levels that make it significantly cheaper to operate an EV. On top of that, EVs also show very low-cost periodic maintenance service needs.”
“Ultimately, what people are starting to recognize is how EVs are more cost-effective compared to ICEs, over a period of 5 years or more” Donald added.
How EVs are changing the game in mobility
In terms of how EVs are impacting the tollways business, Donald said that along with Metro Pacific Tollways Corp.’s (MPTC) expressway business units, its government partners, and EV industry partners, MPT Mobility is working on bringing more EV charging infrastructures along tollways.
“We need to be able to support EV charging station installations and operations, in the same way that gasoline stations are requisite along the thoroughfares,” Donald explained. “The limited availability of public and private EV charging infrastructure is a major concern for potential EV buyers considering at some point, there’s the possibility of miscalculating their charge range thus causing range anxiety.”
Apart from the EV charging stations, Donald also noted “We also must consider the roadside assistance services we provide along expressways. We need to provide emergency EV charging services for customers who may still happen to run out of charge while on the expressway.”
As the innovations arm of MPTC, MPT Mobility is committed to helping push for more public EV charging stations along expressways and maximize technology as a primary touchpoint for every vehicle owner.
“MPT Mobility plays a significant role in the country’s shift toward EV adoption by providing EV charging infrastructures along MPTC expressways and leveraging on MPT DriveHub—MPTC’s travel companion app—to help motorists locate EV chargers, enjoy cashless payment, and have access to 24/7 help and support.”
When asked how e-mobility aligns with MPT Mobility’s sustainable goals, Donald shared that “with MPTC’s sustainability goals, particularly ‘Driving Decarbonization and Driving Product Utilization,’ supporting EV adoption will help push decarbonization considering that the transportation sector is one of the major contributors of carbon emissions.”
Donald added that MPT Mobility is already in discussions with the Toll Regulatory Board (TRB) to help expedite the installment of EV chargers on existing expressways, as well as the guidelines to ensure that future expressways are also EV Charging Station-ready.
In terms of opportunities, “there will be many opportunities across the EV value chain,” Donald stated. “In manufacturing, there will be opportunities in battery, auto parts, charger equipment, and car assembly, while vehicle sales will bring about opportunities for dealers, leasing companies, and insurance.”
Donald further added that if the use of EVs becomes integrated in the day-to-day activities of people, it will create opportunities for EV charging operators, maintenance and repair, and e-Mobility Service Providers (eMSP).
The future with e-mobility
“In our sustainability goal of driving product utilization, we aim to drive tourism and trade by connecting places through MPTC’s network of expressways. We have seen some logistics providers already start to use EVs in their operations and we would like to help accelerate such initiatives by integrating EV charging infrastructures along expressways,” Donald said.
Apart from ensuring that EV charging stations are available, Donald noted that there will also be a need to increase our production of clean energy.
“To truly drive decarbonization, we need to ensure that the energy source for EV chargers is clean,” he explained. “Thankfully, there already has been a rise in clean energy generation projects across the country, resulting in 35–40% increase in clean energy generation over the last 5 years. We also need to work on ways to recycle or upcycle batteries that no longer meet the performance needs of vehicles to reduce the environmental impact of producing new batteries.”
Ultimately, Donald expressed that welcoming EVs not just in the Philippine market, but also to the day-to-day activities will play a significant role in decarbonizing the Philippine transportation industry, creating a more sustainable environment and mobility landscape for all.
