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The government is promoting the use of Electric Vehicles – vehicles that run on electric batteries. However, for so many years, the Philippine government is still at that process of encouraging stakeholders to scale up the use of alternative fuels and energy efficient technologies.
The current annual motor vehicle growth rate of about 6.0-percent will likely increase road transport emissions. Core part of the value chain, according to the DOE, will be the construction of support structures – such as EV charging stations – and the need to establish strong, after-sales services to address issues on the availability of service centers and replacement parts, as well as the sustainability of e-vehicle operations.
Electric vehicles are exempted from excise tax. EVs is the only support so far from the government but more needs to be done to boost local manufacturing.
Heavy Duty Market
The heavy-duty market segment is dominated by Asian vehicle makers. Japanese trucks and buses such Isuzu and Hino have assembly operations in the Philippines. Fuso trucks and light buses are distributed in the Philippines as CBUs. Several Chinese truck brands enjoy market acceptance because these are affordable. European brands Scania and Mann are also in the market. For the U.S., there is more opportunity for used trucks over new trucks.
There are current and upcoming private sector construction projects from buildings, condominiums, malls and other property development projects in several cities in the Philippines. The Philippine government is also pursuing the BUILD BUILD BUILD infrastructure development program, with high-impact road, ports, and airport projects as listed in www.build.gov.ph. These major construction and infra projects from both the public and private sector would create favorable prospects for the heavy duty segment as trucks play a major role in logistics and construction.
Specialty Equipment Market
Car modification/car customization is popular among car enthusiasts and is considered a niche market. Activities in car customization include part replacement, body works, paint jobs, interior works, car restoration, and body kit upgrades. Use of LED lights, blinkers, sirens, whistles, bells, other early warning devices, and metallic and stud tires are restricted. Car modification is allowed in conformity with transportation laws passed by the Land Transportation Office (LTO).
best prospects