EV adoption campaign seen facing affordability hurdles
By Beatriz Marie D. Cruz, Senior Reporter
THE campaign to promote the adoption of electric vehicles (EVs) as an alternative to internal combustion engine (ICE) cars is running up against affordability concerns and the dearth of charging infrastructure, according to Agile Data Solutions, Inc., a market research firm.
“Filipino buyers do their research, especially about price points,” Agile Data Solutions Co-founder and Chairman Jason Christian B. Gaguan said in a video interview.
“EV players need to understand their target market and then (set prices based on) the price stratification of their market.”
Mr. Gaguan noted that awareness of the benefits of EVs is high, though hurdles remain before potential buyers come to the stage of the purchase decision.
“The competition among EV sellers is not awareness. It’s about consideration, meaning ‘I know that EVs exist, but would I consider buying?’” he said.
He also said the preferred vehicle type is the sport utility vehicle (SUV), though sedans enjoy an affordability advantage.
“That is an opportunity also for EV manufacturers to offer larger sedans or probably compact SUVs at the sedan price point,” Mr. Gaguan said.
Citing results of study, “Oil Shock Pushes Filipinos to Reconsider Mobility — But EV Adoption Remains Deferred,” Mr. Gaguan noted that about 44% of survey respondents that do not own an EV or hybrid vehicle are deterred by price.
Other factors include concerns about battery lifespan or replacement cost (20%); limited charging infrastructure (13%); lack of clear information (9%); range anxiety during daily travel (7%); and limited model choices (7%).
It also noted that 52% of respondents consider EV charging stations in their area to be inadequate.
Mr. Gaguan noted that the expansion of EV manufacturing in the Philippines could help lower the retail price of EVs.
Around 49% believe that with suitable government support, switching to EVs would reduce their financial burden, while only 34% expect minimal impact.
Mr. Gaguan noted that transitioning to electric vehicles would require higher upfront costs, as users would also need to invest in solar panels or personal EV chargers.
Nevertheless, he said the Philippines will remain a strong market for four-wheeled vehicles.
“If you ask a Filipino millennial or a working Gen Z about their plans, the first things they want to purchase are a house and then a car,” he said.
Agile Solutions surveyed 5,000 respondents via the Hustle PH mobile application and Hustle PH mini-app within GCash. The survey was conducted on Jan. 13, with majority of the survey participants aged 25 to 34 years.
