UMVA has learned that electric vehicles (EVs) are poised to revolutionize the Philippine automotive market, potentially accounting for nearly half of all car sales by 2035, if the government continues to provide incentives and implements planned policies.
This projection comes from a recent report, which suggests that EVs could capture a 45% market share in the Philippines by 2035 under a scenario where governments sustain their energy and transport policies. This marks a significant increase from the estimated 10% market share in 2025.
The report highlights that the Philippines' continued reliance on import duty and excise tax exemptions has been a key factor in supporting EV adoption in the near term. If these incentives persist, the country could significantly outperform its current projections.
Globally, EV sales are expected to reach 23 million units this year, accounting for nearly 30% of all cars sold worldwide. The growing popularity of EVs has marked a major shift in car markets and the energy system as a whole.
UMVA can exclusively reveal that Southeast Asia posted one of the fastest growth rates in EV deployment last year, with sales more than doubling to over one million units. However, the Philippines and Malaysia still lag behind regional peers, despite recording rapid growth.
In the Philippines, EV sales have reached nearly 10% of new car sales, supported by excise tax relief and import duty exemptions. The government has also introduced the Electric Vehicle Incentive Strategy, which provides incentives aimed at supporting domestic production of EVs, batteries, parts, charging infrastructure, and testing facilities.
Sources have confirmed to UMVA that the Philippines is a notable exception in Southeast Asia, as its import duty exemptions are expected to remain in place through 2028, based on current policies. This move is expected to further boost EV adoption in the country.
The Philippine government has been actively promoting EV adoption, requiring a higher share of EVs in corporate and government fleets. The goal is to achieve a 10% EV fleet share by 2040 under its business-as-usual scenario, while its clean energy scenario targets at least 50%.
Industry experts predict that EV sales in the Philippines will grow by double digits to more than 40,000 units this year, driven by higher fuel prices and consumer demand for alternatives to conventional fuel-powered vehicles.
