Insights Blog
Feb 23, 2024

The automotive industry has witnessed a paradigm shift towards sustainability in recent years, with electric vehicles (EVs) emerging as the frontrunners in the race toward a greener future. With countries seeking to reduce carbon footprint amid climate change concerns, investing in EVs has never been more compelling. 

What are EVs?

EVs are defined as vehicles with "at least one electric drive for propulsion," based on Republic Act 11697 or the Electric Vehicle Industry Development Act (EVIDA).  


There are four types of EVs. Battery EVs (BEVs) rely solely on a battery to power the vehicle. Plug-in hybrid EVs (PHEVs) can be recharged using external electric sources similar to the way mobile phones are charged. Hybrid-EVs (HEVs) are classified as those powered either through recharging or fueling. Finally, Light EVs are those weighing less than 50 kg. These include electric scooters, electric bicycles, and electric personal transport.  


As of 2021, some 8,500 EVs were registered with the Land Transportation Office. According to industry leaders, that has nearly doubled to around 16,000 at the end of 2022. But despite the increase in EV ownership, affordability remains a concern for many Filipinos, with many models costing at least Php 1 million. As consumers contemplate transitioning from traditional fuel-powered vehicles to EVs, weighing the advantages and disadvantages is crucial to make an informed decision.  

Pros of owning an EV

Environmental Benefits

EVs produce zero tailpipe emissions, reducing air pollution and mitigating the detrimental effects of greenhouse gases on the environment. Switching to EVs is a tangible way for individuals to contribute to sustainability efforts and combat climate change. 


Lower Operating Costs

While the initial purchase price of many EVs might be higher than most conventional vehicles, EV owners typically enjoy lower operating costs over time. Electricity is often cheaper than gasoline, and EVs require less maintenance due to fewer moving parts, resulting in reduced servicing and repair expenses. That said, charging an EV is generally cheaper than refueling a gasoline vehicle, leading to significant long-term savings on fuel expenditures. 


Performance and Driving Experience

Electric motors deliver instant torque, providing smooth and swift acceleration. EVs are also renowned for their responsive driving dynamics, offering a quiet and comfortable ride. In addition, EVs brake using electric motors instead of applying friction using the hydraulic braking system found in traditional vehicles. 


 Government Incentives

Under the EVIDA, EV owners get several perks to make buying one more enticing. These include exemption from the number-coding scheme and discounts on car registration (30% for BEVs, 15% for PHEVs and HEVs). The law also encourages banks to prioritize the development of financing packages to enable more Filipinos to purchase an EV. 

Cons of owning an EV

Limited Range and Charging Infrastructure

One of the primary concerns for prospective EV buyers is the limited driving range compared to conventional vehicles. Although EV range has improved significantly in recent years, some models still struggle to match the range of their gasoline counterparts. Moreover, the availability of charging stations remains a challenge in certain areas, potentially causing range anxiety – or the fear that EVs, despite being charged, won't be enough to complete a journey, especially if it's long. 

Long Charging Times

While refueling a traditional vehicle is done in minutes, charging an EV usually lasts for hours. The actual period in which an EV is charged depends on the kind of charger available, which determines the charging speed. 

Higher Upfront Costs

Although EV prices are gradually decreasing as technology advances and production increases, they still tend to have a higher upfront cost than traditional vehicles. This initial investment may deter some consumers despite the potential long-term savings on fuel and maintenance. 

Battery Degradation and Replacement Costs

Like their traditional counterparts, EV batteries' performance and capacity degrade, reducing driving range and efficiency. While advancements in battery technology continue to address this issue, replacing a worn-out battery pack can be a substantial expense for EV owners. 

Limited Model Variety

While the selection of EV models has expanded in recent years, there are still fewer options than traditional fuel-powered vehicles. Consumers may need help finding an EV that meets their specific preferences in terms of body style, features, and performance. 

Buying an EV indeed offers numerous benefits. If you’re the type who is conscious about green living and is willing to invest in a more sustainable future, then taking the EV route is for you.


Alternatively, you may still opt for a traditional vehicle if affordability is still a major consideration. Nonetheless, it’s still worth it to watch the developments in the car marketplace, as more and more EVs hit the road. 

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