Changing Forward: The Shape of the Philippines' Electric Vehicle Market

The Philippine government has actively supported EV adoption through measures such as extending zero-tariff rates on battery electric vehicles and components until 2028, and aiming to bolster the domestic EV industry despite global trade tensions. This policy environment coincides with a rapid growth phase in the local EV market, where sales surged from under 1,000 units in 2022 to nearly 20,000 units projected in 2025, driven by increasing consumer demand, government incentives, and expanding infrastructure.

While strides have been made in fostering a welcoming environment for adoption, there still remains a few key drivers to dominant growth in the country. 

As of late 2024, EV charging stations nationwide were far below the estimated 5,000 needed by 2030 to support projected EV growth. The shortage creates a “chicken and egg” problem where consumers hesitate to buy EV’s because of the lack of adequate charging options, and investors are reluctant to build infrastructure without enough EV users. This weakening consumer demand has been resulting in slow market growth.

Private companies particularly play a pivotal role in driving the development and deployment of EV charging infrastructure in the PH. Their investments and technical expertise are crucial in addressing “range anxiety” -- a major barrier to EV adoption-- by making charging more accessible and convenient for everyday consumers. 

SM Supermalls’ strategic charging stations are a prime example. Access to charging options tend to be concentrated in large commercial areas (e.g. mall parking lots, office buildings). The expansion is promising, but it also reveals a key limitation:Most charging stations are clustered in upscale urban centers, making access difficult for EV owners outside Metro Manila or those who rarely visit these areas. This underscores the need for broader distribution across provincial hubs, parking lots, and transit terminals.

BYD Cars Philippines has rapidly established itself as the dominant force in the country’s EV market by leveraging a multi-faceted strategy centered on product diversity, aggressive expansion, and accessible technology. In 2024, BYD achieved an extraordinary 8,900% growth compared to the previous year, capturing 69% of the battery electric vehicle (BEV) market. BYD’s strategy also involved expanding its dealership network, growing from 25 to 52 locations in 2024, and developing a nationwide EV charging infrastructure through its distributor ACMobility, the automotive arm of the Ayala Group.

Other Chinese EV brands like Omoda and Jaecoo are expanding their footprint through their own subsidiary, planning to open 24 dealerships in 2025 to reach key urban and regional markets. Other established brands like Nissan, MG, Hyundai, and Changan continue to offer EVs through their existing dealer networks, while Li Auto is preparing to enter the Philippine market as part of its Southeast Asia expansion, though distributor details are not yet public. 

High upfront costs continue to be an attached problem in EV consideration, despite brands going through massive expansion. Research shows that BEVs in the Philippines cost approximately 1.7 to 2.4 times more than comparable internal combustion engine (ICE) vehicles, while plug-in hybrid EVs (PHEVs) cost about 1.4 to 1.99 times more. The high cost is usually attributed to factors such as expensive battery packs, the concentration and pricing of raw materials (e.g., lithium, nickel), and limited local manufacturing capacity. Electricity prices in the Philippines are also among the highest in Asia, which can affect the operational cost advantage of EVs.

Central to the issue is the PH’s heavy reliance on imported vehicles, particularly from China, due to the absence of a local automotive manufacturing industry. Without domestic production capabilities, the PH depends on foreign suppliers for both finished EV units and the raw materials that power them. 

China, in particular, has become the dominant source of EVs and related technologies for the PH. This reliance stems from China’s vast manufacturing capacity, cost competitiveness, and well-established supply chains. Chinese automakers offer electric vehicles at significantly lower prices than their Western or Japanese counterparts, making them more accessible in a price-sensitive market like the PH. 

Beyond finished vehicles, the PH also depends on China for key EV components, particularly lithium-ion batteries, which are the heart of the EV. China controls a substantial portion of the global supply chain for critical minerals like lithium, cobalt, and nickel, and leads in battery manufacturing technology. This dependency is further deepened by China’s ability to offer bundled after-sales services, spare parts, and software support -- features that are essential to the long-term viability of EV use in the PH. Given the country’s lack of technical infrastructure and R&D capacity in this sector, Chinese EVs remain not just the most affordable but also the most practical option for the PH. 

Other barriers include limited government subsidies, high import tariffs on certain EV models, and inconsistent policy implementation, all of which dampen investor confidence and slow down the transition. 

Despite the rapid growth in electric vehicle adoption and the proliferation of incentives, the Philippines remains fundamentally constrained by its lack of local vehicle production. This heavy reliance on imports—particularly from China—shapes not only the pricing and availability of EVs but also the broader development of the local EV ecosystem. Without domestic manufacturing, the country is subject to global supply chain fluctuations, foreign pricing strategies, and limited opportunities for local job creation and technology transfer. Overreliance on a single country limits local innovation, exposes the EV market to external shocks, and hinders the development of a domestic, reliable, and sustainable EV market. This economic and technological asymmetry presents a long-term question mark: What will this mean for the Philippine EV landscape moving forward?

The Electric Vehicle Industry Development Act (EVIDA) has been a key driver in promoting EV adoption, offering tax breaks and incentives for both manufacturers and buyers. However, while EVIDA and related policies have created a more favorable environment for EV uptake, they are not yet matched by the robust policy frameworks and infrastructure investments needed to overcome the country’s reliance on imports and bridge critical technology gaps. 

To truly accelerate the transition to electric mobility, the Philippines must prioritize long-term strategies that foster local manufacturing and build out nationwide charging infrastructure. The ideal is to reduce import dependency and cultivate a resilient, self-sustaining EV industry.