Filipinos have the lowest inclination among their Southeast Asian counterparts to switch to hybrid or electric vehicles (EVs) due to inadequate charging infrastructure, according to the Deloitte 2023 Global Automotive Consumer Study.
The study showed that 72% of Filipinos prefer gas or diesel engines, also referred to as internal combustion engines (ICE), for their upcoming vehicle purchases.
The study also found that of the 69% of Filipinos expecting to have charged their EVs at home for daily use, 71% of them will likely struggle to charge them because they could not install home chargers (26%) or because doing so would be expensive (45%). Five percent decided to charge at work, while 26% chose to do so at a public charging station.
Although the study indicated a 10% decrease in Filipino respondents from the previous year’s survey, their preference for fossil fuel engines remained higher than that of Vietnamese (59%) and Indonesian (59%) respondents, as per the study.
Singaporeans have the highest level of interest in EVS with 62%. This is followed by a 60% interest.
The belief among customers that EVs may dramatically reduce operating costs has emerged as one of the driving forces behind the transition towards electric vehicles, amid the government’s ardent push to address the issues of climate change. For Filipinos, the other reasons include “better driving experience,” and “less maintenance.”
Filipinos’ top five reasons for choosing an EV as their next vehicle are: 55% cited lower fuel costs as the main motivation, 52% preferred a better driving experience, 45% considered less maintenance, while 43% expressed concerns about personal health and the ability to use the vehicle as an alternate power source at home.
CEO and Managing Partner of Deloitte Philippines, Eric Landicho, said it is crucial to secure the EV charging infrastructure first. Customers will be encouraged to switch to EVs as they become more widely available by initially offering charging stations.
Additionally, it is important to think about whether there is sufficient skill and manpower available to maintain these vehicles whenever their owners require assistance. With sufficient planning and preparation, Landicho believes that the acceptance of EVs will rise over time and create economic opportunities.
More than 26,000 consumers took part in the study, which ran from September to October 2022. Southeast Asia (SEA) contributed a total of 6,048 participants, including 1,006 from Malaysia, 1,003 each from Indonesia and Singapore, 1,008 from the Philippines, 1,019 from Vietnam, and 1,009 from Thailand.