Philippine e2W and e3W : Market

Potential and Trends

Jose Bienvenido Manuel M. Biona, PhD.

Executive Director, Electric Vehicle Association of the Philippines
Executive Director, Enrique Razon Jr. Logistics Institute, De La Salle University
1
The Electric Vehicle Association of the
Philippines
• Established in 2008 and one of the very first EV industry
associations in Southeast Asia.
• Spearheaded the creation of the Asian Federation of Electric
Vehicle Associations (AFEVA), which comprises of members
from the Philippines (EVAP), Thailand (EVAT), Indonesia
(PERIKLINDO), Singapore (EVAS) and Malaysia (EVAM).
• EVAP has 76 members, which comprises of EV and EVSE
manufacturers, research universities, importers and
distributors.
• Currently organizing its 11th consecutive annual EV show
(October 2023).
2
What to expect?

 Philippine current and potential e2W and e3W Market

 Economics
 e2W and e3W Classifications and Regulations
 Technical standards trajectory
 Key Points
Philippine EV Adoption as of 2021

7,000
 Philippine EV
6,000
dominated by MC
and TC
5,000
 Growth is
4,000
expected to
3,000
accelerate with
2,000 EVIDA
1,000  CREVI to be
-
2017 2018 2019 2020
released soon
Cars UV SUV Trucks Buses MC and TC
 2W and 3W Market Size

 While 2W and 3W market has

taken a dip in 2020, sales started
to pick up again in 2021
 Philippines among the main 2W
and 3W markets in the region

Source: Le and Yang (2022). Market Analysis of Two and Three Wheeler Vehicles in Key ASEAN Member States. Working Paper 2022-19. ICCT.
 e2W Market Characteristics

L1e
<50 kph

88.2% 45.5% 76.8% 0%

Local Local Local Local

Predominantly Low End No battery swapping

Source: Le and Yang (2022). Market Analysis of Two and Three Wheeler Vehicles in Key ASEAN Member States. Working Paper 2022-19. ICCT.
 2W Market Profile

• Bigger market potential

• Daily commute, logistics, motorcycle taxis
• Higher cost
• Lack of electrified units in the market

L3e

L1e

Source: Le and Yang (2022). Market Analysis of Two and Three Wheeler Vehicles in Key • Personal use within community
ASEAN Member States. Working Paper 2022-19. ICCT. • electrification is ongoing
 3W Market Profile
• Personal use, unpermitted public transport, short distance cargo delivery in
markets
• electrification is ongoing

L2e

L4e and L5e

• Bigger market potential

• Public transport, Small businesses
• Electrification on-going but mostly confined in
few sites or grant based
• Very high upfront vis a vis conventional units

Source: Le and Yang (2022). Market Analysis of Two and Three Wheeler Vehicles in Key
ASEAN Member States. Working Paper 2022-19. ICCT.
PHILIPPINE TARGETS

9
e2W and e3W Strategic Importance

• Big and Increasing Market Share

• Established 2 and 3 W manufacturing capability
• Major opportunity to grow local manufacturing
Financial Analysis Snapshot

Conditions for Financial Acceptability

Motorcycles
₱225,000.00 Logistics TCO
₱1,400,000.00
₱175,000.00
₱1,200,000.00
₱125,000.00
₱1,000,000.00

₱75,000.00 ₱800,000.00
Vehicle Cost

₱600,000.00
₱25,000.00
₱400,000.00
ASEAN e-MC PH MC i 125 PH MC 125 i
Base Vehicle Cost 92532.4675324675 61607.1428571429 64853.8961038961 ₱200,000.00
Battery Cost 61688.3116883117 0 0
₱-
Overhead + Profit 16811.4543114543 6715.7335907336 7069.65894465895 ASEAN e-MC ASEAN e-MC GCF PH MC M 125 PH MC 125 H
Importation Tariff 0 0 0 -₱200,000.00
Value added taxes 20357.1428571429 8132.14285714286 8560.71428571429
Investment Energy Reg. Maint
Excise taxes 0 0 0
Midlife Rebuilding Batt Rep+Leasing Salvage Value
Tricycles
Retail Prices Annual Expense

2.50

2.00

1.50
Expense per passenger-km
20.00
1.00

15.00
0.50

10.00
-
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
5.00
Bajaj TC eTC eTC GF eTC GF BL eTC BL

-
Bajaj TC eTC eTC GF eTC GF BL eTC BL

(5.00)

Investment Energy Reg. Maint

Midlife Rebuilding Batt Rep+Leasing Salvage Value
2W and 3W Classifications and Regulations

Class Picture Wheels Curb Speed Power Roads Helmet License Reg.
Weight

Private and
Barangay
None None Roads only,
L1a 2 Specified ≤ 25 kph Specified Bikeways, Bicycle No No
Other lanes
designated
by LGU

L1b
All local
2 None >25 kph None Roads only, Motorcycle No No
Specified ≤ 50 kph Specified outermost
lane
2W and 3W Classifications and Regulations

Class Picture Wheels Curb Speed Power Roads Helmet Licen Reg.
Weight se

Private
None ≤ 1,000 W and
L2a 3 Specified ≤ 25 kph Barangay Bicycle No No
Roads
only

L2b All local

None >25 kph Roads
3 Specified ≤ 50 kph ≤ 1,000 W only, Motorcycle Yes Yes
outermo
st lane
2W and 3W Classifications and Regulations
Class Picture Wheels Curb Speed Power Roads Helmet Licen Reg.
Weight se

Same
None None roads
and rules
L3 2 Specified >50 kph Specified as Motorcycle Yes Yes
motorcyc
les

L4 and L5 Same
roads
3 ≤ 600 kg ≤ 50 kph > 1,000 W and rules No Yes Yes
as
tricycles
e2W and e3W Standards and Regulations
Component
Battery / Battery packs
Onboard charger
Charge port
Electronics controller
Electric vehicle battery swapping system
Electric Vehicle connectors
Charging systems
Protection against electric hazards/ failures
Electrically propelled vehicles
Battery Electric mopeds and motorcycles
Road vehicles
Road vehicles functional safety
Number of Standards Adopted
6 • Big and Increasing Market
2 Share and Major opportunity
9 to grow local manufacturing
11 • Established 2 and 3 W
14
manufacturing capability
 77 e2W and e3W related
4 standards adopted but only 8
4 adopted for regulations
4 (Charging System related c/o
8 DOE)
4
 UNR136 is yet to be adopted
into regulation
1
 Lack of capacity of local
10
testing facility and services
 Need to streamline technical
standards and testing to
ensure implementation while
facilitating industry growth
 Streamlining Technical Standards and Testing

Environmental Electrical Safety

Vehicle Performance Robustness Insulation Resistance
Top Speed Tropical Rain Test Hi-Pot Test
20% Hill Climb Capbility Flood Flording Overload Protection
Braking Distance Mechanical Shock and Shorting
Minimum Range Vibration Overcharging
Battery Cycle Life Drop Test Overdischarging
• Vehicle Performance Knock-over Test Maximum Main Charge
Current
• Environmental Robustness Charge Ingress Protection
• Electrical Safety
Standard Accessories
• Standards Vehicle Accessories Audio Device (Horn)
Noise Device
Electromagnetic Compatibility
• Electromagnetic Compatibility Electromagnetic Emissions
Interoperability of Batteries Vehicle Immunity
• Interoperability of Batteries Battery charger
Removable Batteries and
• Labeling Labeling Battery Swapping
Electric Vehicle
High Voltage
Battery Recyclcing
Key Points

 e2W and e3W dominates the Philippine EV market and projected to

grow exponentially with the EVIDA
 Big potential for L3e vehicles though adoption has been limited so
far due to availability of units and high cost
 Battery leasing and green financing are enablers for L3e, L4 and L5
market growth
 LEV policies are in place
 Technical standards exist but with limited adoption into regulations
[Thank You]