Chinese electric automakers reportedly seek to infiltrate the ASEAN automotive market through exports, including the Philippines. In that sense, the government of China built the China-ASEAN Electric Vehicle Production Base in Guigang, Guangxi.
According to The Philippine Star, the move is part of the country’s efforts to accelerate the green and sustainable energy shift.
About the China-ASEAN EV production base
The Chinese government aims to leverage the China-ASEAN Electric Vehicle Production Base to explore practical strategies for partnership expansion and develop more electric vehicle offerings throughout their key local markets.
It aims to expand by 6.6 million square meters for a total investment of 15.7 billion yuan (approximately $2.15 billion), The Manila Times reported.
“Our industrial park was built with an aim to serve the ASEAN countries as Guangxi is a permanent area for the ASEAN expo.”
Lin Shaohua, Gangbei District’s Deputy Director
For context, the base homes six of the leading electric automakers in the world’s largest automotive market, along with other less popular brands.
Impressively, the base has already manufactured more than five million electric vehicle models since its launch in 2015.
“Now the main domestic market for us is the southern and western part of China, but we hold the goal to expand to ASEAN countries.”
Lin Shaohua, Gangbei District’s Deputy Director
Philippines’ potential
In March, The Asian Development Bank asserted its optimism that the Philippines has strong potential to advance as a competitive electric vehicle market and production hub.
At that time, the Philippines’ interest in EV technology remained far behind its neighboring countries.
According to the Deloitte 2023 Global Automotive Consumer Study published in May, 72% of Filipino people still favor gas and diesel-powered cars for their next vehicle. Nonetheless, it represented a 10% decline from last year’s survey results.
In contrast, Singapore dominated the ASEAN market in terms of showing interest in EVs. In fact, 62% of Singaporeans are considering getting an EV for their next buy.
2030 target
The Philippines aims to deploy 6.6 million electric vehicles on the roads by 2030, Gulf News reported. Of that total, about 50% will comprise electric two-wheelers and tricycles.
However, the achievement of this ambitious target strongly relies on several factors, such as the following:
- how effective is the new EV law
- regional competition posed by ASEAN neighbors
- how the resistance from the “jeepney” sector is tackled
- overall market acceptance of EVs
The Philippine Government undoubtedly supports the global shift to electric mobility. In fact, the President has introduced Executive Order 12 to temporarily eliminate tariffs on most EV imports. It also now offers significant incentives to boost the country’s EV industry.
