Electric car sales in the Philippines reach 20,000 units as 13th EV Expo showcases market dynamics – CleanTechnica

---

Support CleanTechnica’s work with a Substack subscription or on Stripe.

---

As the 13th Philippine EV Expo opens today, the country’s EV market is experiencing unprecedented growth, with projections suggesting sales could reach 20,000 units in 2025, up from just 4,000 vehicles in 2024.

CleanTechnica will provide full coverage of the four-day event. We also use it as the basis for an earlier interview with electric car expert Akshay Prasad, Group Director of Arthur D. Little Southeast Asia’s Automotive & Manufacturing Practice. The full interview is available here.

The five-fold increase signals a turning point in the archipelago’s automotive landscape, driven by a widespread zero-tariff policy and the growing dominance of Chinese manufacturers, who are capturing most of the emerging market.

The increase follows the government’s extension of zero-rating on electric vehicles and their components until 2028, a policy first announced in May 2024 and reaffirmed in early 2025 as part of the Electric Vehicle Industry Development Act (EVIDA). The policy removes import duties that previously ranged from 3 to 40 percent on fully manufactured units and parts.

Chinese brands are at the forefront

Chinese manufacturers, especially BYD, have built a leadership position in the Philippine market. In the first half of 2025, BYD commanded an estimated 40 percent share of battery electric vehicle imports, with models like the Atto 3 and Seal gaining traction in the PHP 1.5 to 2.5 million price segment.

“For Chinese brands like BYD, which already have a significant share of the nascent EV market, this expansion will further their dominance,” said Akshay Prasad, director of Arthur D. Little Southeast Asia’s Automotive & Manufacturing Practice. The zero-tariff policy “could reduce ex-showroom prices by 10 to 15 percent, making them more affordable in the PHP 1.5 to 2.5 million segment, where traditional ICE vehicles still hold their weight.”

Prasad predicts that Chinese brands will capture 60 to 70 percent of the market growth, potentially pushing their overall market share to a dominant position over the next one to two years. “This policy solidifies BYD’s lead,” he noted, adding that the company is accelerating local assembly plans, potentially through partnerships with firms such as ACMobility, with a goal of 10,000 units a year by 2027.

New vehicle classifications change reporting

Significant regulatory developments are changing the way the industry tracks and reports EV adoption. The Department of Energy’s September 2025 reclassification expanded EV categories from four to six, now including battery electric vehicles (BEVs), hybrid EVs (HEVs), plug-in hybrid EVs (PHEVs), light-duty EVs (LEVs), range-extended EVs (ReEVs), and fuel cell EVs (FCEVs).

With effect from 20 September 2025, this harmonized framework under EVIDA replaces the narrower definitions from 2023 and has immediate implications for both consumers and industry stakeholders.

“Recognition of tax exemption is now being rationalized along with removal of confusion regarding zero rate of VAT,” explained Prasad. “PHEVs, for example, now explicitly qualify and appeal to buyers concerned about scale in a market where 70 percent of potential adopters cite infrastructure gaps.”

The reclassification is expected to increase hybrid registrations by 25 percent in 2026 as consumers gain clarity on which vehicles qualify for incentives. Uniform industry classifications improve sales tracking through the Land Transport Authority and provide better data for policy refinement. Registrations to date in 2025 have already exceeded 5,000 units, setting new records.

The question of hybrid transition

While battery electric vehicles dominated the first half of 2025 with 75 percent of EV sales (3,083 units), hybrids showed remarkable growth, growing 40 percent year-on-year to gain 25 percent market share. Models like Toyota’s Corolla Cross have driven this hybrid surge.

“Hybrids will really serve as a critical bridge in the Philippine context, not a passing phase,” Prasad said, debating whether the market will quickly shift to battery-only EVs or rely on hybrids as a transitional technology.

By 2030, he estimates, hybrids could capture 40 percent of electrified sales before easing toward BEVs as battery costs drop by 20 percent thanks to the localization of nickel. “A rapid shift to BEVs is unlikely as infrastructure lags (less than 1,000 stations) and grid volatility favor hybrids as fuel backups, after 70 percent of Filipinos commute 50 to 100 kilometers per day.”

Availability remains a key challenge

Despite the pace, electric vehicles remain premium products in the Philippine market, with average prices of PHP 2.2 million compared to PHP 1 million for combustion engine equivalents. This price difference limits EV penetration to just 2 percent of total sales in 2025.

Prasad identified three main barriers to mass adoption: high initial costs driven by battery prices, which account for 40 percent of vehicle costs; range anxiety fueled by sparse infrastructure with about one station per 110,000 people; and limited financing options, with only 30 percent of consumers understanding the benefits of electric cars and green credit rates at 8 to 10 percent compared to 6 percent for conventional vehicles.

Infrastructure is racing with demand

The charging infrastructure challenge hangs over market expansion. As of spring 2025, the Philippines had only 962 public charging stations – 421 AC chargers, 59 DC fast chargers and 482 destination chargers. This pales in comparison to similar ASEAN countries such as Thailand, which has more than 5,000 stations.

Far more troubling is the concentration: 80 percent of the Philippines’ charging stations are located in Metro Manila alone, raising serious range concerns for potential buyers outside the capital region.

The Comprehensive Plan for the Electric Vehicle Industry (CREVI) targets 7,300 stations by 2028, which requires tripling the current deployment rate. “Mandatory public-private partnerships with performance-based incentives enforced by DoE regulations” represent the most critical step, according to Prasad, who recommends tax credits of up to 50 percent on capital expenditures for malls, highways and local government units using Level 2 and DC fast chargers.

Regional location

As part of ASEAN’s growing EV ecosystem, valued at US$7.84 billion in 2024 and projected to grow by 7.2 percent annually through 2034, the Philippines is carving out a niche as a potential regional hub for commercial and light EV assembly, leveraging its nickel resources and logistics demand.

“The Philippines can carve out a niche as a regional hub for commercial and light EV assembly,” Prasad said, pointing to opportunities in the commercial EV lead where firms like Mober can lead the deployment of electronic fleets in light commercial vehicles and two-wheelers that they can export to Vietnam and Malaysia.

As the 13th Philippine Electric Vehicle Expo brings together manufacturers, policymakers and consumers, the event serves as a barometer for an industry at an inflection point – growing rapidly but facing significant infrastructure, affordability and localization challenges that will determine whether the Philippines can meet its goal of 50 percent electric car sales by 2040.