THE Electric Vehicles Association of the Philippines (EVAP) expressed optimism about the potential of local EV assembly in the Philippines following the signing of a memorandum of understanding with South Korea in line with the Free Trade Agreement (FTA) between the two countries.
EVAP Chairman Emeritus Ferdi Raquelsantos said the FTA could attract Korean brands to expand operations in the country, which would be beneficial since the Philippines is recognized for its quality manufacturing skills.
The Philippine market currently offers 58 EV models, predominantly made in China. But sales of Korean brands like Hyundai and Kia are good.
Hyundai, in particular, is doing well, competing closely with Chinese manufacturer BYD.
“As far as other brands are concerned, I think almost everybody’s here … At least the high-end brands, the most popular brands,” Raquelsantos said at the sidelines of the Philippines-Korea Business Forum.
He noted local manufacturers were getting ready to supply parts of EVs, which meant the Philippines could produce components such as electric motors and seatbelts, which are integral to both electric and combustion engine vehicles.
“There’s a Taiwanese company that has been talking to us for the last 14 years,” Raquelsantos said, adding there was also a growing interest in developing EV charging stations locally.
The EVAP chief stressed that local EV assembly and processing of mineral resources would allow the Philippines to capitalize on its natural assets.
President Ferdinand Marcos Jr. committed to implement the FTA with South Korea, which the Senate ratified in September.
The FTA is expected to give Filipino investors more access to South Korean markets, as well as draw funding from South Korea in priority sectors, industries and emerging economic areas in the Philippines.
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