HIGHER fuel costs are driving Filipino consumers to consider shifting to hybrid and electric vehicles but challenges to full adoption remain, Deloitte Philippines said.
A 2026 Southeast Asia automotive consumer study found that local interest in hybrid and electric vehicles had risen to 34 percent from 27 percent last year, with the top reasons being lower fuel costs (62 percent), concerns for the environment (49 percent) and a better driving experience (45 percent).
The top worries, however, are the lack of public charging infrastructure (48 percent), the cost of battery replacements (41 percent) and charging times (41 percent).
The lack of charging stations — the top concern for three years — has persisted despite an increase in their number to 1,569 to date from just 338 in 2024, Deloitte noted.
“These concerns remind us that electrification is not just about vehicles — it’s about building a resilient ecosystem that thoroughly supports customers throughout their vehicles’ lifecycle,” said Carlo Navarro, Deloitte Philippines’ consumer industry lead.
Addressing the charging infrastructure, battery lifecycle and consumer confidence issues will require sustained collaboration between government and business, he added.
“Only by accelerating this transition together can we ensure that the promise of EVs translates into lasting value for Filipino consumers and the broader economy,” Navarro said.
Switching intent was said to be high among Filipino consumers, with brand loyalty at just 37 percent and first-time owners comprising 31 percent of the market. Deloitte said this “highlights a market less anchored to legacy brands and more open to exploring alternatives.”
Factors said to be driving brand choice were vehicle performance (67 percent), product quality (64 percent) and price (52 percent).
“This emphasis on practical value helps explain why the country’s brand loyalty is weak — consumers are less anchored to heritage and more focused on tangible, everyday benefits,” Deloitte said.
Filipino respondents are also the most willing to pay for emergency assistance (87 percent), anti-theft tracking (87 percent), warranty/recall notices (79 percent), and vehicle health reporting and maintenance cost forecasts (79 percent).
They are wary, however, about sharing data from onboard cameras (73 percent), connected devices (72 percent) and connected services (71 percent).
Most of the respondents (69 percent) viewed software-defined vehicles — those that are primarily managed and upgraded by software rather than hardware — as useful. Most (66 percent) are also likely to use artificial intelligence-enabled customization features.
Philippine consumers, however, are only willing to pay less than five percent over the list price for over-the-air (OTA) update capability, which Deloitte said suggested that OTAs could be viewed as an expected baseline feature.
“The Filipinos’ value on practicality is on full display in their automotive preferences — performance-based, cost-efficient, but equipped with the necessary safety and comfort technologies,” Navarro said.
“Their loyalty is rarely on specific brands, but on the value for money that their purchases deliver,” he added.
“To win their trust, businesses must design offerings that combine concrete everyday benefits with transparent data safeguards — positioning digital features not as extras, but as integral to performance, quality and value.”
THE MANILA TIMES
