In 2025, the Philippine automotive industry is poised to unfold transformative changes and opportunities, preparing drivers for a journey that elevates their modern lifestyles.
As the auto industry increasingly shifts to eco-friendly and sustainable transportation, mobility is now charging towards electric vehicles (EVs). Projections for 2025 indicate that the share of electric cars will continue to grow in the Philippines, with forecasts predicting 6.6 million EVs on Philippine roads by 2030 and 50% of all vehicles shifting to electric by 2040.
Recognizing the rise of EVs in recent years, Toyota Motors Philippines (TMP) Corp. stated in a BusinessWorld report that the auto industry is on track to achieve 470,000 in sales, with EVs accounting for nearly 4% of that figure.
Another driving factor for this growth is the arrival of new models and brands. Among the leading EV companies in the Philippines include Chinese EV manufacturer BYD making up 70% of the country’s EV sales in 2024. Another key player is TMP, holding a solid 40% share of the market. By 2025, the company plans to expand its EV lineup with the introduction of more hybrid and fully electric models.
“With the sustained effect of expanded fiscal incentives for hybrid and plug-in hybrid models, the entry of new market players, and continuous public-private collaboration on EV charging infrastructure, TMP expects that EV sales volume will continue to increase,” TMP was quoted as saying.
Moreover, advanced features are expected in new vehicles, packed with cutting-edge technology that are set to redefine the driving experience.
According to information platform TechInsights, Level 2 (L2) vehicle automation is a standout feature to lookout for in 2025. Vehicles are becoming more than just one with steering wheels, as they are now equipped with smart technologies designed to assist drivers on the road.
This year, L2 automated vehicles are shaping up to become the new mainstream, whether in luxury or standard cars. This tech enables features like adaptive cruise control, which helps maintain a safe distance from other vehicles, adjust speed control, and keep the vehicle in its lane.
As cars become smarter, the appetite for 5G chipsets in vehicles is growing rapidly, allowing automobiles to connect to the internet, other devices, and other infrastructure at significantly faster speeds.
One notable application of 5G chipset can be seen on autonomous vehicles (AVs) or self-driving cars. Through 5G, AVs are enable a full 360-degree view, advanced sensors, optimized routes, better fuel consumption, PWD-friendly designs, and even shared ownership. One more interesting aspect for AVs is the Light Detection and Ranging (LIDAR) system, which utilizes automotive sensors, scanners, and lasers to measure distances.
In a report on its website, Tech Collective Southeast Asia expects AV driving technology to make its way to EVs, which will transform mobility across ASEAN countries, making transportation easier and more convenient.
“Vehicle electrification will make driving an emissions-free endeavor, reducing harmful fumes in the air and protecting the environment from the effects of carbon dioxide. The increase in young, tech-savvy citizens in the region will ensure advances in AI and ML to boost the development of autonomous vehicles, limiting traffic congestions that cause pollution,” it said.
Vehicle-to-everything (V2X) technology is also another groundbreaking feature. V2X enables vehicles to connect with various systems, including other vehicles, Internet of Things (IoT) devices, motorized systems, grids, and infrastructure around them. The V2X tech is set to take off across ASEAN countries in the upcoming years, Tech Collective Southeast Asia added. The V2X market is projected to reach $6 billion in 2025, positioning ASEAN as a key player in the global growth of the industry. — Angela Kiara S. Brillantes
