High gasoline prices drive EV sales surge in the Philippines

Manila, Philippines - Higher gasoline prices, following US-Israeli strikes on Iran in late February, have led to a surge in demand for electric vehicles (EVs) in the Philippines, government and industry officials say. Gasoline prices have increased by 68.3%, making the country the fourth most expensive for fuel globally. This has disproportionately affected the Philippines, as the nation imports nearly all its fuel, lacks public transport, and does not provide fuel subsidies.

Registrations of EVs, including hybrids, surged 130% annually, reaching over 67,000 during the eight months through August. This represents nearly a quarter of passenger car sales in the country, compared to 12% in 2025 and 4% in 2024. Patrick Aquino, director of the energy ministry's Energy Utilization Management Bureau, noted the surge in demand, stating that customers had to place orders, make deposits, and wait for their units to arrive.

By October 2025, BYD had delivered 28,399 units in the Philippines, a 99% increase compared to the same period in 2024. BYD's Managing Director, Bob Palanca, expects this momentum to continue through 2026 and into 2027. EVs accounted for nearly a quarter of car sales in the Philippines this year, up from 12% in 2025 and 4% in 2024, according to Carla Buencamino, Head of Mobility Infrastructure at ACMobility.

The Philippine government encourages the shift to electric vehicles, aiming for EVs to comprise half of the nation's taxi fleet and cars used by government officials by 2030. The energy ministry is also lobbying for duty-free imports of EVs beyond the planned expiry of the exemption in 2028.

However, electric motorcycles have been growing more slowly due to their higher costs. VinFast's arrival with models priced under 100,000 PHP (US$1,594.21) could make electric motorcycles a more viable option in the future.