Should you go for an electric vehicle?

The transition toward an electric future in mobility is progressing slowly in the Philippines.

 

As of 2018, according to Trade & Industry Undersecretary Rafaelita Aldaba, there were 4,362 registered electric vehicles (EVs) in the country, 83 percent of which are e-tricycles, and the rest  are public transportation units such as e-jeepneys and e-bus/trucks.

 

Aldaba said that there are only 19 charging stations in the country. The government’s goal is to have 200 by 2022 in SM and Shell stations in the National Capital Region.

 

Given the lack of EV charging infrastructure, only six out of 34 car brands are selling hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) or fully electric/battery electric vehicles (BEVs): Toyota, Lexus, BYD, Hyundai, Volvo and Land Rover.

 

They may soon be joined by Nissan, which plans to launch the all-electric Leaf this year or next, and Mitsubishi, which has donated five units each of the iMIEV and Outlander PHEV to the Department of Environment and Natural Resources (DENR) but has not set a time line for their commercial sale.

 

The PH auto industry in general is in no hurry to start offering electric vehicles (EVs) since they cost much more than internal combustion engine cars, the infrastructure of charging stations has not materialized, and our emerging economy has just begun to motorize nationwide with traditional fossil fuel vehicles. Besides, the minimum emission standard here is pegged at an easily compliable Euro 4 or a sulfur level of 50 parts per million (ppm), and no one is going ballistic over the smog in urban centers.

 

Moreover, it is a case of infrastructure builders waiting for sufficient consumer acquisition of EVs to invest in charging facilities, while consumers wait for more charging stations to be built before buying a battery-powered vehicle.

 

Last month, 16-time Triple Crown Awardee Toyota Motor Philippines (TMP) proclaimed its leading role in the country’s electric transition by hosting the Toyota Hybrid Technology Conference themed “Toward Sustainable Mobility” which touted the self-charging Prius HEV, available locally since 2009, and  Lexus HEVs as the future of local transportation.

 

CHALLENGE

 

That proclamation is now being challenged by Hyundai Asia Resources, Inc. (HARI), which had introduced in early 2018 what HARI president Ma. Fe Perez-Agudo calls “the first mass market hybrid vehicle” – the Hyundai Ioniq HEV, which retails at P1.5 million.

 

But isn’t the Toyota Prius, which was launched in the Philippines 10 years ago in June 2009, truly the first mass market hybrid vehicle?

 

Not if you compare the Hyundai Ioniq HEV’s P1.5 million retail price with that of the 2019 Prius, which is P2,249,000 for the 1.8 liter sedan, and P1,867,000 for the 1.5 liter Prius C subcompact hatchback.

 

For similar retail prices, you can buy Hyundai fully electric or battery electric vehicles (BEVs) such as the 2020 Ioniq Electric for P1.8 million, or the 2020 Kona Electric for P2.3 million.

 

Both Hyundai BEVs were introduced in the Philippines this year after the Kona Electric was named the “Best in EV” by the 2019 Wards Auto Competition, the Edmunds Editors’ Choice Award, Car and Driver, the American Council for an Energy-Efficient Economy, and other organizations.  Agudo claims that the Kona Electric has best-in-class range and can travel over 400 kilometers on a single charge.

 

In an online interview, Agudo said: “Sustainable mobility has long been our battle cry and we are keen on playing a major role in taking the Philippines to the future. We have backed our words by introducing to the market a full line-up of Hyundai hybrid and electric vehicles.  Hyundai Philippines is prepared to be a driving force in this space.”

 

INVITATION TO INVEST

 

Agudo added that HARI is encouraged by the government’s increasing focus on the environment as manifested by its invitation to South Korean automotive players to invest in the promising local EV industry, perhaps aware that over the next five years, Hyundai Motor Company will increase its EVs to nearly 40 variants.

 

She revealed that the Philippines and South Korea are negotiating a bilateral Free Trade Agreement (FTA) that will pave the way for increased market access, including automotive products. The Philippine government is encouraging Korean manufacturers to set up shop in the local EV sector since, aside from the country’s strong macroeconomic fundamentals and continuing growth, batteries make up over 60 percent of the cost of an EV, and our country has a wealth of nickel and cobalt reserves aside from a gold mine of human resources.

 

“The Philippines has a strong potential to be an EV hub in the region,” Agudo maintained.  “The ongoing negotiations on Philippine-Korea FTA is an opportunity to make our country EV-competitive.”

 

To help spur the development of the country’s EV industry, and to encourage the shift to a more eco-friendly mode of transport, Agudo suggested that aside from lowering import taxes and granting other fiscal incentives, the government should also look at non-fiscal incentives such as free registration for hybrid/EVs, free parking, and no toll fees.

 

“This goes beyond Hyundai’s business, this is about leaving a lasting legacy for future generations.  We believe in doing business right and through the EV space, we will boost the competitiveness and overall sustainability of our country for years to come,” the HARI CEO concluded.

 

The PH government has a counterproposal for Korea in the ongoing FTA talks.  The government is willing to put up the infrastructure of EV charging stations if the Korean companies commit to make the Philippines their production hub for EVs in Southeast Asia.

 

Other countries in the region are approaching the EV future faster than the Philippines.  The Toyota Prius HEV is already being manufactured in Thailand, while in Vietnam, VinFast is set to launch a home-grown, fully electric hatchback model within the year, thanks to tech cooperation with EDAG, the world’s largest independent German engineering services provider.

 

Will the Philippine auto industry be left behind again?

 

OTHER EVs AVAILABLE

 

Meanwhile, the other car companies aside from Toyota, Lexus and Hyundai selling EVs here are BYD, Volvo and Land Rover.

 

Honda Cars PH used to sell the CR-Z, a hybrid sports coupe and a HEV version of the Legend luxury sedan, but no longer.

 

BYD PH sells the Tang PHEV at P3,288,000.  Why is it so expensive? Read the sidebar story.

 

In January this year, Volvo Cars PH began pre-selling three PHEVs: the Volvo S90 T8 at P5,950,000; the XC60 T8 at P5,595,000 and the XC90 T8 at P7,995,000.  The Swedish carmaker was acquired in 2010 by China’s Geely Holding Group, which explains the numerous electric cars in its lineup.

 

Land Rover, the all-terrain half of Jaguar-Land Rover, was acquired in 2008 by India’s Tata Motors.  Jaguar-Land Rover introduced the Range Rover Evoque in 2010. The all-new 2020 Evoque, launched at Bonifacio Global City last week, has a self-charging MHEV 2.0 petrol variant retailing at P6,190,000.