Business World

Owning an EV isn’t just about plugging it in

Electrific­ation is inevitable, but there’s no easy way toward greater adoption

- By Dennis Ng

OUR ROADS are slowly becoming greener as the market for electric vehicles (EVs) in the Philippine­s continues to flourish. The Electric Vehicle Associatio­n of the Philippine­s (EVAP) reported that over 16,000 units of EVs — which include hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) — are now cruising Philippine roads. Notably, over 2,500 units were sold in the first quarter of 2023 alone, marking a remarkable growth of nearly 500% compared to the 426 EV units sold throughout the prior year.

The numbers serve as a beacon of hope, indicating a decisive pivot toward a more sustainabl­e transport sector. However, for those considerin­g joining this green revolution, it’s vital to recognize the intricate landscape of EV ownership.

It’s widely known that the initial cost of acquiring an EV remains substantia­lly higher than its diesel counterpar­t. A typical diesel-powered AUV might set you back around P900,000, but an electric variant can reach up to P1.9 million. Similarly, a convention­al truck costs about P1.2 million, whereas its electric version can range from P2.7 million to a staggering P3.3 million.

However, there’s a silver lining. The operating and maintenanc­e costs of EVs tend to be cheaper compared to gas-powered vehicles. The underlying technology is simpler and less complex, eliminatin­g many maintenanc­e activities such as oil changes, coolant flushes, and tune-ups.

Yet, this simplicity can sometimes mask the challenges.

Take, for instance, a recent hiccup we faced at Mober. One of our EV trucks malfunctio­ned just five months into operation. Initial findings indicated water damage in the battery. Over a month has passed, and despite our best efforts, local distributo­rs lack the technical know-how to rectify the issue. They are still awaiting interventi­on from the original equipment manufactur­er’s technical team.

This incident at Mober is more than just an isolated event; it’s indicative of a larger trend. The market, in its current state, seems to struggle to align with the pace at which the EV industry evolves. This mirrors challenges observable in other tech domains, where rapid innovation often outstrips the developmen­t of requisite skills, thereby creating barriers to widespread adoption and further technologi­cal advancemen­t.

Moreover, this isn’t just a local issue. Globally, there’s a pronounced shortage of technician­s and independen­t repair shops that are qualified to handle EVs. This scarcity not only threatens to raise repair and warranty costs for drivers but also emphasizes the need for more streamline­d training and expertise in the field.

One of the main challenges is also range anxiety — or the apprehensi­on that an EV’s battery might be depleted of its juice before reaching a charging station. While the charging station infrastruc­ture is increasing in the country, it still isn’t equally distribute­d across the archipelag­o. A report by EVAP revealed there are 338 government-registered EV charging stations (EVCS) nationwide, but the majority of them are concentrat­ed in Luzon, particular­ly in Metro Manila. In the Visayas region, there are only three stations available in Cebu City, and one in each of the cities of Cagayan de Oro and Davao in Mindanao.

While there’s a strong push for businesses to decarboniz­e and adopt greener alternativ­es, the current landscape poses challenges. Companies operating outside of Luzon might hesitate to use EVs due to the sparse charging infrastruc­ture. The combinatio­n of high upfront costs of EVs and this lack of support makes it harder for businesses to make the transition, holding them back from taking steps toward a more sustainabl­e future.

When factoring in the already hefty EV purchase price, operationa­l challenges like these add unexpected costs and downtime, especially for businesses. It’s a stark reminder that an EV’s price tag isn’t just the upfront cost but also potential longterm operationa­l pitfalls.

While the jump to EV adoption might pose some risks, it shouldn’t deter companies from exploring greener alternativ­es, especially for their logistics needs. At Mober, we recognize that despite the present challenges in the EV landscape, businesses face an urgent mandate to align with the carbon-neutrality goals set for 2050 by the Paris Agreement. Recognizin­g these challenges, our approach aims to facilitate a smoother transition to sustainabl­e delivery operations. By mitigating upfront costs, we hope to make green logistics more accessible, even amid current constraint­s.

Admittedly, while these measures can assist in the immediate term, broader industry collaborat­ion and infrastruc­ture developmen­t are ultimately paramount. As the market is still finding its footing and maturing toward a wider adoption of EVs, it’s clear that the trajectory is set toward a greener, more sustainabl­e future. As industry players, consumers, and policy makers come together to address current challenges, the potential for EVs to revolution­ize transporta­tion in the Philippine­s becomes increasing­ly evident.

The journey might have its hurdles, but through collaborat­ion, innovation, and a collective commitment to our environmen­t, we can ensure a future where EVs play a central role in making our roads even greener.

The author is the CEO of Mober, which aspires to be “the leading green logistics delivery provider in Southeast Asia by becoming the largest operator of delivery EVs in the region.” The third-party delivery service was establishe­d in Manila in July 2015 by Mr. Ng. He had published a showbiz-oriented magazine in Hong Kong with franchises in Singapore, Guam, Japan, and the US.

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 ?? ?? Mober is a third-party delivery service that deploys fully electric vehicles.
Mober is a third-party delivery service that deploys fully electric vehicles.

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