THE 4 MOST SIGNIFICANT TRENDS IN PH MOTORING IN THE PAST 3 DECADES

4. The future is electric: Hybrids and EVS

Trend number 4 hasn’t reached the same effect on the local market, as that of Trend numbers 1 to 3, but the obvious impact it has made on global markets make it just a matter of time before hybrid vehicles, electric vehicles (EVS) and personal EVS eventually take over the transportation landscape.

Leading the charge in this aspect has been TMP, with its Toyota Prius being introduced in the Philippine market in 2009. This hybrid gasoline-electric car has been named as among the 50 cars in automotive history to have changed the world. The Prius, by itself, has been helping shift paradigms in the motoring consciousness. In 2013, the less expensive, smaller and funkier Prius C was introduced in the Philippines. In 2019, the hybrid variant of the Corolla Altis was introduced in the Philippines.

Other hybrid vehicles that have arrived on Philippines shores are the Lexus hybrids the Lexus CT 200h, Lexus GS 450h; Lexus RX 450h, and Lexus LS 600hl. In 2013, Inquirer Motoring got to drive the Mercedesbenz S 400h, the Honda Insight, and the Honda CR-Z (which unfortunately has been pulled from the Philippine market).

EVS from China were also first felt here when BYD Philippines introduced its BYD Tang Plug-in hybrid EV crossover, BYD E6 2018 Crossover EV, and hybrid sports saloon Qin.

Hyundai Asia Resources Inc (Hari) introduced the Philippine market to the Hyundai Kona Electric, the first all-electric subcompact SUV and the Hyundai IONIQ Electric, allelectric compact sedan.

Despite the presence of a number of these EVS and hybrids in the country, they still have a long way to go to become top-of-mind among Filipino buyers. Mabilog said:

“Due to the growing concern on hydrocarbon vehicles incurring environmental damage through its emissions, and the high cost of fuel, hybrids and EVS became very popular, especially in advanced countries. However, in the Philippines, I personally do not think that hybrids and EVS have made any significant mark yet. The lack of government support and high cost of hybrids and EVS compared to their fossil-fueled counterparts make it highly uncompetitive in the Philippines. Furthermore, the Philippines has one of the most expensive cost per kilowatt amongst Asean neighbors, making EVS even more less attractive.”

Socco, however, reiterates that it would just be a matter of time before the Philippines embraces EVS and hybrids. “This is surely a global trend in response to calls for more sustainable mobility. The future of mobility is definitely electric. This, however, will happen at a differing pace globally since the shift to electric requires a lot of attendant enablers: Charging infrastructure, more efficient production costs, more affordable prices, and a prosustainability government regulatory framework.”

Socco added: “One thing that many people often overlook is the very reason for the shift to electrified vehicles. It is because we need to reduce dependence on fossil fuel and cut down harmful emissions that damage the environment. While EVS reduce tailpipe emissions on vehicles, this will be offset by the increased carbon emissions from mainly coal-fired plants that generate electricity. Therefore, there has to be a cohesive and coherent plan that actually reduces the total carbon footprint of automobiles—taking a “well to wheel” approach. Otherwise, the gains from the shift to EVS will be significantly set back by increased emissions from electricity generation.”

In terms of personal urban mobility, one cannot ignore electric-powered scooters. In this aspect, Socco also expects the rise of personal mobility transport such as e-bikes and escooters.

“These alternative mobility modalities are rising in popularity due to convenience and a growing sense of responsibility for the environment,” he said.

Socco also cited the growth of the two-wheelers: “I believe the reason is obvious: The lack of mass transport and the alarming road congestion.”

Honorable mentions

The list above in no way completes the total motoring picture for the Philippines. The automotive landscape is constantly changing and evolving, as the dynamics between humans and machines, the need for mobility and the desire for efficiency and speed in a fastmodernizing world are creating even more possibilities and realities. The following are the other significant factors playing their roles in making the Philippine automotive industry that much more interesting, far more complex, and ultimately so much more exciting.

A. The rise of the two wheelers and small cars

In 2012, this author wrote that all road conditions point to extremely happy times ahead for the motorcycle business. That has largely become true seven years later. Because motorcycles are so much cheaper, and consume much less fuel for a solo or dual (and even multiple) riders, and can weave in and out of traffic with ease, it’s really no surprise that the number of motorbike riders in the country has zoomed up tenfold.

In 2011, the number of registered motorcycles was 3,881,460, or 54.37 percent, of the total motor vehicles registered nationwide. In 2010, it was just over 3,482,149 million, or 52.48 percent. In 2017, the Motorcycle Development Program Participants Association (MDPPA) alone (which includes Honda, Yamaha,

Suzuki, Kawasaki and Kymco buyers) had sales of 1,319,084 units. In 2018, MDPPA members had a total of 1,580,926 units sold.

In an interview in 2012, Arnel Doria, founder of the Safe T Ryders, gave his own take on the reason for the increased number of motorbike riders: “Here’s how I look at the economics of motorcycles: If a person spends P100 a day for transport fare (on Fx/jeepney/taxi/mrt), that would be P2,600 a month. Nowadays, motorbikes can be loaned at P2,000/month with downpayments as low as P5,000. So it’s cheaper to have your own bike. Owning a bike has other benefits: You control your own time and mobility, you have a transport on Sundays and holidays, and after having fully paid for it, you have property that you can sell to recover some of your payment.”

B. Small cars, big biz

Mills counts the emergence of the compact and subcompact cars as a significant trend. “Before, you’d think the Toyota Corolla would be the smallest. Then there came the Hyundai Eon, Suzuki Alto and Celerio, Toyota Wigo, Mitsubishi Mirage, and Honda Brio. There was also Corolla’s smaller version, the Vios. But they gave interior roominess. Honda had its Jazz. The market realized that cars could be affordable, too.” Mills added that smaller cars became acceptable, and affordable, and mobilization has reached many income levels.

Socco cited that the original Vios, which is designated then as the AFC, was custom-built with the Asian market in mind.

“With the rise of economic development and growth of the middle class, there was a need to cater to their rising need for a sedan. At the time, sedans were considered the hallmark of social status, of having ‘arrived.’ The sedan denoted prestige. As families then were young and only coming into their newfound affluence, a small and affordable sedan was determined to be the appropriate model to meet their needs. Over time, the AFC (first introduced as the Soluna in Thailand) evolved into the Vios, and is now the most popular sedan in the region. Toyota’s decision to register the Vios under the government’s CARS program is testament to its preeminence as the sedan of choice of Filipinos,” said Socco.

C. PUV modernization

The modernization program of the government would be another must-watch trend, said Mills.

In describing the Public Utility Vehicle Modernization Program (PUVMP) launched in June 2017, the LTFRB envisions a “restructured, modern, well-managed and environmentally sustainable transport sector where drivers and operators have stable, sufficient and dignified livelihoods while commuters get to their destinations quickly, safely and comfortably.”

According to the LTFRB, 220,000 outdated PUVS nationwide need to be replaced by safer, cleaner, more efficient, and more convenient modernized PUVS.

“It’s not like hopia (a popular Filipino pastry) that you can produce overnight. Plus, you have to consider the absorption capacity of the market. It is not only about buying into it. We are forcing (operators and drivers) to change the system. The government is saying you must form the cooperative. The franchise is no longer with the operator who owns it. We no longer have individual cowboys that will own one unit. It will belong to the cooperative, which is required to get at least 15 units. That’s what’s hard to accept for the operators,” said Mills.

D. The Chinese invasion

For Mabilog, the emergence of the Chinese brands in the Philippines would be the trend to watch out for.

“The automotive industry is slowly being penetrated by Chinese auto manufacturers whose high-quality vehicles are now comparable, if not superior, to current car manufacturers and priced much lower than its Japanese, American, or Korean counterparts. This now makes the automotive industry realm more interesting and competitive. Consumers now have a wider choice of vehicles to choose from,” he said.

E. The ride-hailing apps, P2PS and UV express

For Socco, the “explosion of shared riding/hailing, such as those of Grab, UV Express (vis FX of old), Angkas, P2P (vis Love Bus of old), are clearly emerging trends that are the outcomes of the lack of mass transport and the call for more convenience from the riding public. This was enabled by the increase in technology platforms.”

He added that the trends came about in the last decade and are indicative of the shift of transportation as we know it to a broader-based era of mobility.

These alternative mobility modalities are rising in popularity due to convenience and a growing sense of responsibility for the environment

Vince Socco Chairman at GT Capital Auto Dealership Holdings, Inc