The Philippines is at a critical juncture in its transition to cleaner transport. With climate goals pressing and global electrification trends accelerating, the country’s adoption of electric vehicles (EVs) has gained momentum but still faces significant challenges. Dr Jose Bienvenido Manuel M. Biona, Executive Director of the Electric Vehicle Association of the Philippines (EVAP), shared his insights on EVs’ barriers, opportunities, and future in the Philippines.

The obstacles vary across different segments of the market. For public transport, financing remains the most pressing issue. “Adoption of electric vehicles in the public transport sector is mostly limited by access to financing,” Biona said in an email interview with e27.

Public transport is mainly private and operated by low-income and informal groups, making integrating electrification with broader sector reforms challenging.

Meanwhile, logistics, corporate fleets, and households face challenges due to limited charging infrastructure and a lack of familiarity with the technology. Despite tariff and excise tax exemptions, high upfront costs continue to deter consumers.

“It could be said that with the tariff and excise tax exemptions, it is already nearing cost parity with conventional vehicles except for e-motorcycles and e-trucks, which remain quite more expensive,” Biona noted.

Other hurdles include expensive electricity — the Philippines has the second-highest power rates in Asia — and the influx of second-hand imported trucks, which weakens the business case for new electric trucks. In addition, misinformation about EV safety, reliability, and climate impact hampers public confidence.

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Solutions on the horizon

Despite these challenges, opportunities are emerging to accelerate the sector’s growth. One key measure is battery leasing, which lowers operators’ upfront costs. “Battery leasing services should significantly reduce the upfront cost of vehicles, greatly pushing their market attractiveness,” explained Biona, who recently participated in the 3rd ASEAN Battery Technology Conference in Phuket, Thailand.

While such services exist in limited form today, scaling them could reshape adoption.

Green loans and climate finance initiatives also hold promise, particularly for public transport providers. The logistics and corporate sectors may benefit from mandates under the Energy Efficiency and Conservation Law, which compels companies to cut energy use. Biona argued that including electrification mandates for trucks and commercial vehicles under this framework could further drive adoption.

Policy developments are also helping. New fuel economy labelling and potential standards could limit second-hand imports, paving the way for electrification. Meanwhile, the Department of Energy recently exempted power for EV charging stations from VAT when sourced through the green energy option programme, helping to offset high electricity prices.

Still, progress is not guaranteed. Biona warned that “the main threat to the electrification efforts is coming from some segments in the automotive industry which seek to slow down BEV and PHEV adoption.”

With strong lobbying power, these groups can influence government decisions and stall momentum.

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Additionally, many financing schemes depend on multilateral loans. While repayment may not be an issue, rising government debt has made officials cautious, potentially delaying access to much-needed capital.

Battery technology is advancing rapidly globally, but local innovation in the Philippines has focused on integrating the Internet of Things (IoT) and intelligence into battery packs and vehicles. According to Biona, this enables “innovative business models which were not possible previously” and may ease adoption in specific markets.

Legislatively, the country has made significant progress. “The first major milestone was the signing into law of the Electric Vehicle Industry Development Act, which greatly boosted EV adoption in the past three years,” Biona said, adding that this created a framework for coordination among government agencies.

Further, the long-awaited Electric Vehicle Incentive Strategy will be announced this year. It promises generous investment support, subsidies, and tax breaks — incentives that could attract battery and EV manufacturing to the Philippines.

The road ahead

The future of EVs in the Philippines hinges on aligning financing, infrastructure and policy while countering misinformation and industry pushback. The economic case for EVs is strengthening, particularly as incentives bring them closer to cost parity with petrol vehicles. Yet, high power costs and fragmented adoption remain barriers.

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For Biona, the momentum is clear: EVs are not just a climate necessity but a chance to modernise public transport, improve logistics and spur local manufacturing. The path forward may be uneven, but with the right mix of policy, finance and innovation, the Philippines can charge ahead.

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Image Credit: Hannah Sibayan on Unsplash

Disclaimer: The story “EV adoption in the Philippines gains momentum, but challenges in financing and technicalities remain” first appeared on e27 and is syndicated via Digpu & NewsTex.