A SENATOR is studying a proposal for government agencies to put a “hard stop” to the purchase of fuel-fed vehicles starting 2028.
Sen. Sherwin Gatchalian is pushing instead for the wider adoption of new energy vehicles (NEVs) such as electrified or hybrid cars.
Delivering his keynote speech at The Manila Times Automotive Forum held at the Heritage Hotel on Thursday, Gatchalian said only 10 percent of government vehicles are electric vehicles (EVs).
Gatchalian said switching to EVs helps reduce the country’s dependence on oil. The Philippines imports nearly all of its oil requirements, while the transportation sector accounts for 52 percent of total consumption.
“And that’s why events like this are very important, so that we will know the problems, we will know the ways forward, and we will continue to educate motorists on adoption,” he said, referring to The Times automotive forum.
Gatchalian said there are amendments in Republic Act 11697, or the Electric Vehicle Industry Development Act, to improve the deployment and financing of EVs, increasing by 20 percent the EV infrastructure including charging points and parking slots, and more electrified vehicle utilization in the commercial sector.
“Of course, the other sectors are much more complicated, like the commercial and industrial sectors. Those are technologies that have yet to become feasible at this time. But if we manage to electrify the transportation sector, that’s already half the battle won,” he said.
Only 1 percent of registered vehicles in the country are electrified, placing it near the bottom among Southeast Asian nations in EV adoption.
“If you compare it to the Comprehensive Roadmap for the EV Industry, it’s still far off from the target. That’s why I’m saying that while we have a law, I’m not satisfied with the way we are adopting EVs in our country and how we compare ourselves with the targets,” Gatchalian said.
Gatchalian was the principal sponsor and author of the Evida Law.
He also acknowledged that fiscal incentives are difficult to implement, prompting the government to focus more on non-fiscal incentives aimed at improving the EV ownership experience.
He said that declining battery prices — which account for around 30 to 40 percent of an EV’s total cost — are helping narrow the price gap between EVs and ICE vehicles.
There is no investment environment to attract capital for battery EV battery manufacturing, he said.
“We don’t have that incentive setup yet. In fact, the Philippines has the second-largest nickel deposits in the world, and nickel is a very important component of batteries,” he said.
“We’re shipping nickel to China to make batteries. Why not make the batteries here? Those are the things that we need to look at,” Gatchalian said.
Antonio Zara, the CEO of Vinfast Southeast Asia, told the forum there are impediments to wider EV adoption in the commercial sector, although technological advances in electrified vehicles favor the consumer.
Zara said the current technology favors the adoption of electrified taxis compared to jeepneys.
“EV development has not yet reached development for jeepney-like operations,” he said. “EV cars can generate 30-percent savings, but not yet for jeepney-like operations.”
Zara sees developments in the automotive industry lowering the price points for EVs.
“What’s even more exciting is EV prices will go down as economies of scale are achieved,” he said.
Fuel-fed vehicles could see production costs rise as regulators impose stricter standards for emissions, Zara said.
WITH CONRAD CARIÑO AND RAYMOND TRIBDINO
