MANILA (PHILIPPINE DAILY INQUIRER / ASIA NEWS NETWORK) – Last year, the Covid-19 pandemic depressed global auto sales by 16 percent, and yet, according to the International Energy Agency (IEA), electric car registrations actually rose 41 percent.
At the end of the year, 10 million electric cars were on the world’s roads. Last year alone, around 3 million electric cars were sold worldwide, and Europe has ousted China as the world’s largest electric vehicle (EV) market with 1.4 million registrations versus 1.2 million.
Still, China still has the most electric vehicles on the roads with a fleet of 4.5 million, while Europe is rapidly catching up with 3.2 million.
The numbers are more modest (295,000 electric cars sold last year) in the United States, where Big Oil has traditionally withstood the onslaught of electric vehicles. Nevertheless, their market share increased slightly (to 2 percent) and registrations of electric cars did not decline as sharply as overall.
As the Biden government rejoins global efforts to combat climate change, trends in favor of electric vehicles are likely to intensify.
In the first three months alone, global sales of electric cars more than doubled this year compared to the previous year (140 percent). In addition to cars, electric buses and trucks have also increased in number in recent years, with the IEA estimating global inventories at 600,000 and 31,000 units, respectively.
It is clear that electric vehicles are well on the way to changing the way we all get around, and a drastic transformation of the land transportation industry is on the horizon, especially with the continuing trend towards autonomous or self-driving vehicles.
This is all good news in an effort to halt global warming to prevent catastrophic climate change, as vehicle emissions are a significant, if not the dominant source of greenhouse gases in the atmosphere.
We all saw (and greeted), for example, how blue skies returned in Metro Manila during last year’s strict lockdown weeks when most of the cars were left in the garage or parked.
The Philippines are well positioned to benefit from the growing trend towards electric cars and electric vehicles in general.
In a recent study for the Philippine Institute for Development Studies, Maureen Ann Rosellon examined the country’s strengths and opportunities (along with the challenges that come with it) in the growing electric vehicle market. She believes the EV industry in the Philippines has strong growth potential.
As in other countries where the growth of electric vehicles is rapid, government policies have generally been supportive, although there is still plenty of scope to create an even more favorable environment.
The Senate recently approved Senate Act No. 1382 or the proposed Electric Vehicles and Charging Stations Act, with the counterpart awaiting the House of Representatives.
The lead author, Senator Sherwin Gatchalian, explains that the measure will allow filling stations nationwide to provide charging stations for electric vehicles, public and private buildings to designate their own parking spaces for electric vehicles that also serve as charging stations, as well as large industrial, commercial, public transport and Government agencies require a minimum 5 percent share of electric vehicles in their vehicle fleets.
There will also be tax and non-tax incentives for the import, use and manufacture of electric vehicles. The bill prescribes a nationwide approach to the growth and development of electric vehicles, starting with the formulation of a comprehensive electric vehicle roadmap under the direction of the Department of Energy.
Ms. Rosellon also sees the active involvement of industry and private stakeholders as a blessing. We already have strong companies in the automotive value chain, particularly in wiring harnesses, an important part of electric vehicles.
Ayala Corporation has already announced its intention to expand the production of electric vehicles in the country.
However, Ms. Rosellon notes that the country is still struggling with relatively low technology usage, general concerns about EV infrastructure, and strong competition for investment.
For one, Vietnam has announced plans to develop the electric vehicle industry, and as the country turns previous ambitious industrial plans into a reality, the Philippines will need to shape and strengthen to be in the game.
All in all, we could be a major EV player in the region, but we have to sprint if we are to get there.
- The author is a columnist for the newspaper. The Philippine Daily Inquirer is a member of The Straits Times’ media partner Asia News Network, an alliance of 23 news media outlets.