Is the Filipino market for electric vehicles poised for take-off?
Pulling Up the Gears:
Vietnam's Electrifying Debut in the Philippines' Automotive Scene
Step aside, Philippines, as Vietnam revs up its way into our automotive market for the very first time. With the launch of Vietnamese electric vehicles (EVs) by Vingroup's VinFast, we're witnessing a significant milestone that underscores our vibrant neighbor's economic surge.
The electric revolution kicked off on May 31 at the SM Mall of Asia, where VinFast's Philippine dealerships were unveiled, complete with a dose of authentic Vietnamese coffee, keeping the guests fist-pumping and wide-eyed. Three dealerships have been strategically set up in prime locations, including ASEANA, Parañaque City; EDSA, Mandaluyong City; and Alabang, Muntinlupa City.
As one of TIME Magazine's Most Influential Companies in 2024, VinFast wears its cape with pride, embracing the mantle of a "global smart EV company that accelerates the EV evolution." Not one to shy away from bold moves, VinFast made a splash in the market with its car-selling-on-a-livestream trend, a spectacle that got the whole nation buzzing.
The third livestreaming event, featuring the eye-catching VF 3 model, took place on Monday, November 25. Though rookies when it comes to the car-selling-on-a-livestream game, VinFast quickly picked up the momentum, racking up a whopping 450 comments during its inaugural live session. Netizen Jayvee Fernandez quipped, "Selling cars like cellphones," while comments like "Soo cuuutee" and "Adorable" flooded online forums, a testament to the marketing prowess of this electric automotive brand.
This audacious marketing strategy has helped VinFast become the top-selling automotive brand in Vietnam, with over 51,000 EVs sold this year alone. Their VF 3 model gained record-breaking sales in a pre-order campaign, considered by marketing analysts to be the "most successful" in Vietnam's history.
VF 3 embraces customization with an array of nine colors to choose from, ensuring every ride leaves a vibrant trail of individuality. From summer yellow to infinity blanc, consumers are spoilt for choice. The base model retails for P645,000, making it an attractive contender in the market of small cars, where Toyota's Wigo and Suzuki’s Dzire are priced at P609,000. However, the allure of owning an EV that doesn't require coding in Metro Manila promises a game-changing edge in a notoriously traffic-laden city.
Stepping into the limelight is another contender in the burgeoning market of electric vehicles: Bestune Philippines' Pony. Dubbed as the most affordable mini-EV in the market, retailing at P588,000, the Pony aims to capture the hearts of budget-conscious consumers. Bestune, a subsidiary brand of China's First Automotive Works, introduces yet another option for the ever-growing number of Filipinos who are embracing the EV lifestyle.
Green Waves:
With the entry of affordable EVs, a shift in consumer behavior is emerging. Chalk it up to low prices, number-coding exemptions, eye-catching colors, and the increasing availability of charging stations – a recipe that's making electric cars more desirable than ever before.
Data from the latest earnings report of industry leader Toyota Motors Philippines reveals that total electrified vehicle sales in the third quarter of 2024 have skyrocketed, reaching 14,178, a staggering 133% increase from the same period in 2023 (6,088).
In 2019, only 214 EV cars were sold in the country, a figure that grew to 378 units in 2020, 843 units in 2021, and 3,091 units in 2022. The DOE's Comprehensive Roadmap for the Electric Vehicle Industry sets a goal of a 50% EV fleet share by 2040, with targets of 415,000 Hybrid Electric Vehicles (HEVs), 69,000 Plug-in Hybrid Electric Vehicles (PHEVs), and 69,000 Battery Electric Vehicles (BEVs) by 2028.
The Philippines' electrified vehicle market is slowly but steadily getting into gear, and it's the likes of VinFast and Bestune that are leading the charge. With powerful competitors like American tycoon Elon Musk's Tesla entering the scene, the landscape of the Philippine automotive market is set to be revolutionized.
Bye-bye, fuel, hello electric – Philippines, we're accelerating towards a big, green future. Let's bring home the electrifyingly cool, sustainable cars of tomorrow.
Source: A revised and restructured version of a report from our website
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Enrichment Information:
The shift in the Philippines' automotive market is set to facilitate economic growth through job creation, increased foreign investment, and improved trade balance with Vietnam. The expansion of VinFast's service network in the Philippines and Vingroup's local partnerships can likewise stimulate local economic growth and provide valuable skills training for Filipino workers.
The presence of VinFast and other foreign electric vehicle manufacturers in the Philippines can contribute to the growth of the electric vehicle industry through market expansion, infrastructure development, and increased consumer awareness and adoption of EVs. By promoting sustainable transportation options and providing more choices for consumers, VinFast plays an important role in accelerating the transition towards a greener transportation sector.
- The entry of VinFast, a global smart electric vehicle company, into the Philippines' market signifies a significant fusion of Science (technology) and Business, as they bring cutting-edge technology to revolutionize the environmental-science sector and offer sustainable solutions.
- Finance and Business intersect as Bestune Philippines' affordable electric vehicle, Pony, appeals to budget-conscious consumers, offering an accessible option in the growing environmental-science market, demonstrating the impact of business decisions on the environment.
