Electrification is inevitable, but there’s no easy way toward greater adoption

Our Roads are slowly becoming greener as the market for electric vehicles (EVs) in the Philippines continues to flourish. The Electric Vehicle Association of the Philippines (EVAP) reported that over 16,000 units of EVs — which include hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) — are now cruising Philippine roads. Notably, over 2,500 units were sold in the first quarter of 2023 alone, marking a remarkable growth of nearly 500% compared to the 426 EV units sold throughout the prior year.

The numbers serve as a beacon of hope, indicating a decisive pivot toward a more sustainable transport sector. However, for those considering joining this green revolution, it’s vital to recognize the intricate landscape of EV ownership.

It’s widely known that the initial cost of acquiring an EV remains substantially higher than its diesel counterpart. A typical diesel-powered AUV might set you back around P900,000, but an electric variant can reach up to P1.9 million. Similarly, a conventional truck costs about P1.2 million, whereas its electric version can range from P2.7 million to a staggering P3.3 million.

However, there’s a silver lining. The operating and maintenance costs of EVs tend to be cheaper compared to gas-powered vehicles. The underlying technology is simpler and less complex, eliminating many maintenance activities such as oil changes, coolant flushes, and tune-ups.

Yet, this simplicity can sometimes mask the challenges.

Take, for instance, a recent hiccup we faced at Mober. One of our EV trucks malfunctioned just five months into operation. Initial findings indicated water damage in the battery. Over a month has passed, and despite our best efforts, local distributors lack the technical know-how to rectify the issue. They are still awaiting intervention from the original equipment manufacturer’s technical team.

This incident at Mober is more than just an isolated event; it’s indicative of a larger trend. The market, in its current state, seems to struggle to align with the pace at which the EV industry evolves. This mirrors challenges observable in other tech domains, where rapid innovation often outstrips the development of requisite skills, thereby creating barriers to widespread adoption and further technological advancement.

Moreover, this isn’t just a local issue. Globally, there’s a pronounced shortage of technicians and independent repair shops that are qualified to handle EVs. This scarcity not only threatens to raise repair and warranty costs for drivers but also emphasizes the need for more streamlined training and expertise in the field.

One of the main challenges is also range anxiety — or the apprehension that an EV’s battery might be depleted of its juice before reaching a charging station. While the charging station infrastructure is increasing in the country, it still isn’t equally distributed across the archipelago. A report by EVAP revealed there are 338 government-registered EV charging stations (EVCS) nationwide, but the majority of them are concentrated in Luzon, particularly in Metro Manila. In the Visayas region, there are only three stations available in Cebu City, and one in each of the cities of Cagayan de Oro and Davao in Mindanao.

While there’s a strong push for businesses to decarbonize and adopt greener alternatives, the current landscape poses challenges. Companies operating outside of Luzon might hesitate to use EVs due to the sparse charging infrastructure. The combination of high upfront costs of EVs and this lack of support makes it harder for businesses to make the transition, holding them back from taking steps toward a more sustainable future.

When factoring in the already hefty EV purchase price, operational challenges like these add unexpected costs and downtime, especially for businesses. It’s a stark reminder that an EV’s price tag isn’t just the upfront cost but also potential long-term operational pitfalls.

While the jump to EV adoption might pose some risks, it shouldn’t deter companies from exploring greener alternatives, especially for their logistics needs. At Mober, we recognize that despite the present challenges in the EV landscape, businesses face an urgent mandate to align with the carbon-neutrality goals set for 2050 by the Paris Agreement. Recognizing these challenges, our approach aims to facilitate a smoother transition to sustainable delivery operations. By mitigating upfront costs, we hope to make green logistics more accessible, even amid current constraints.

Admittedly, while these measures can assist in the immediate term, broader industry collaboration and infrastructure development are ultimately paramount. As the market is still finding its footing and maturing toward a wider adoption of EVs, it’s clear that the trajectory is set toward a greener, more sustainable future. As industry players, consumers, and policy makers come together to address current challenges, the potential for EVs to revolutionize transportation in the Philippines becomes increasingly evident.

The journey might have its hurdles, but through collaboration, innovation, and a collective commitment to our environment, we can ensure a future where EVs play a central role in making our roads even greener.

The author is the CEO of Mober, which aspires to be “the leading green logistics delivery provider in Southeast Asia by becoming the largest operator of delivery EVs in the region.” The third-party delivery service was established in Manila in July 2015 by Mr. Ng. He had published a showbiz-oriented magazine in Hong Kong with franchises in Singapore, Guam, Japan, and the US.