MANILA, PHILIPPINES – With fewer than 19,000 electric vehicles sold in 2024, the Philippines remains a minor player in Southeast Asia’s fast-growing electric vehicle (EV) sector. But as ecosystem innovators like Vietnam’s VinFast make inroads into the market, the country is poised to close the gap through strategic partnerships and holistic support for electrification.
According to recent industry data, Southeast Asia’s EV momentum is rapidly accelerating, with emerging Asia recording nearly 400,000 EV sales in 2024. Vietnam led regional growth with close to 90,000 units sold representing 17.6% of its total car market followed by Thailand with over 70,000 units (13%) and Indonesia with more than 49,000 EVs (7%). The Philippines, by contrast, recorded sales of just under 19,000 units, capturing only 4% of new car purchases.
Neighboring countries have adopted aggressive strategies to lead the EV transition. Thailand has rolled out generous multi-year tax holidays and is targeting 30% domestic EV production by 2030. Indonesia is leveraging its significant nickel reserves to become a regional battery manufacturing hub. Meanwhile, Vietnam has strategically positioned VinFast as a national champion in EV development and exports.
In the Philippines, legislative groundwork has been laid. The 2022 Electric Vehicle Industry Development Act (EVIDA) sets ambitious goals for EV adoption through incentives like reduced import tariffs, EV-only parking spaces and mandates that 5% of large fleets transition to electric. However, analysts note that the policy lacks robust supply-side measures to attract OEMs or stimulate manufacturing.
This shortfall is not merely a matter of environmental urgency. Economic vulnerability is also at stake. Analysts at MUFG estimate that a $10 increase in global oil prices could widen the Philippines’ current account deficit by a full percentage point, from 3.5% to over 4.5% of GDP, largely due to fuel imports.
The country has pledged to cut greenhouse gas emissions by 75% by 2030 under the Paris Agreement. However, meaningful electrification of transport requires not just the vehicles themselves, but the infrastructure and support systems that make EV ownership viable. This is where VinFast enters the picture.
Since opening its first three showrooms in July 2024, VinFast has pursued a “whole-of-ecosystem” approach in the Philippines. Now a full member of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI), VinFast is gaining a voice in shaping local EV policy alongside traditional automakers.
The Vietnamese automaker’s strategy is as comprehensive as it is ambitious. Under its “For a Green Future” initiative, VinFast aims to establish over 60 showrooms across the Philippines by the end of 2025. It has also forged key partnerships with service providers such as Goodyear and Tire King to expand after-sales coverage through more than 100 authorized service workshops nationwide. This directly addresses one of the top concerns among potential EV buyers: vehicle maintenance and repair accessibility.
To ease range anxiety, VinFast has introduced a nationwide free charging program valid through May 1, 2027, linked to the launch of its VF 6 subcompact model. The initiative is supported by its infrastructure arm, V-GREEN, which plans to install 15,000 charging ports throughout the country in 2025.
VinFast’s multi-pronged approach tackles three primary barriers to EV adoption — charging access, service coverage and affordability. The brand has even introduced a buyback program offering up to 90% of the vehicle’s original value, enhancing financial confidence for new adopters.
While the company does not yet manufacture locally, its investments are creating employment opportunities in sales, after-sales services, software and charging infrastructure – key support pillars that align with EVIDA’s goals and contribute to reducing urban emissions and oil dependency.
Perhaps the most underrated obstacle to widespread EV adoption is consumer unfamiliarity. Studies, including those from international markets, suggest that once drivers experience EVs firsthand, their concerns about range limitations, cost, and convenience significantly diminish.
To address this, VinFast is building visibility through real-world mobility collaborations. A key example is Green GSM, the Philippines’ first fully electric taxi service, launched in June 2025. Operated exclusively using VinFast vehicles, the fleet offers thousands of daily commuters a tangible introduction to EVs.
The Philippines may have entered Southeast Asia’s EV race from the back of the pack, but it is not without potential. VinFast’s ecosystem-driven model offers a replicable blueprint for EV adoption that addresses the unique structural and consumer-level challenges in the local market.
