How Will the Philippine Electric Vehicle Law Affect the Property Market?

The Electric Vehicle Industry Development Act has lapsed into law, as reported by BusinessWorld. The measure seeks to develop and regulate the Philippine electric vehicle (EV) industry and promote EVs as a mode of transportation that would reduce fossil fuel dependence. 

Also known as Republic Act No. 11697, the Philippine EV Law was signed on April 15, 2022, outlining the regulatory framework for EV manufacturing and its adoption by various industries. The measure also tasks government agencies with creating an enabling and competitive environment for private companies. 

As the Philippine automotive industry adopts EV, how will it impact other key industries like real estate? 

Dedicated Spaces for EVs 

According to a Philstar report, the newly signed EV law calls for a comprehensive roadmap for the EV industry (CREVI), featuring an annual work plan to increase the development, commercialization, and utilization of EVs. Part of this plan is to recognize dedicated spaces like parking slots and charging stations as critical components in EV adoption. 

Under the law, establishments with 20 or more parking slots are mandated to dedicate 5% of their space to the use of EVs and provide charging points. For commercial estate or parking owners, this means modifying existing structures to be EV-ready. 

Meanwhile, new construction projects may have to rethink their parking facilities for electrical vehicle compatibility. As EV adoption increases, residential properties with accessible EV charging points and maintenance facilities will likely be in demand as well. 

According to the law, industries such as food delivery companies, cargo logistics, hotels, tour agencies, and power and water utilities shall have 5% electric vehicles in their fleet, regardless if owned or leased.

Charging Infrastructure Development

According to RA 11697, the Department of Energy (DOE) will be the primary agency to promote EV adoption, including the use and maintenance of charging stations. It was also noted in a Philippine News Agency report that DOE would be in charge of accrediting charging station providers, which requires submission of charging infrastructure development plans.

Earlier, the Electric Vehicle Association of the Philippines (EVAP) expressed its optimism about the issuance of charging infrastructure guidelines and policies by the DOE. The organization believes that this will motivate more businesses to set up EV charging stations in the country, as mentioned in a Philstar report. 

In Metro Manila cities, people have already started using e-vehicles for transportation, which signals the need for more charging infrastructure developments. According to Manila Bulletin, Unioil is the first petroleum company in the Philippines to have an EV charging station, located at Congressional Avenue Extension, Quezon City. 

Ayala Malls is also planning to provide more EV charging and transport systems in its retail developments in the metro. Its first integrated EV charging and transport system was launched last December at Ayala Malls The 30th and Ayala Malls Circuit. 

Manufacturing Hubs for EVs

Part of the rising EV industry is the take-up of more space for manufacturing infrastructure. Hence, the Philippine property market may see an increased demand in industrial towns and zones where EV manufacturing facilities can be set up. 

A planned industrial town in Bataan, for example, would include production facilities for electric or e-mobility vehicles and is envisioned to become a hub for EV manufacturers. A South Korean firm is also investing in the country to build a P5-billion e-vehicle factory in Negros Occidental. 

As per the Department of Trade and Industry (DTI), there are 54 EV manufacturers and importers, 11 parts manufacturers, and 18 dealers in the country as of 2020. With the passing of the EV Development Law, investors and manufacturers are expected to grow in numbers. DTI added that US firms interested in the Philippines’ EV industry would be competing with Chinese, Japanese, and Korean companies already in the market.

Sources: BusinessWorld, Philstar, Philippine News Agency, Manila Bulletin, DTI

Stay tuned for the latest real estate news and tips by following Lamudi on FacebookTwitterInstagramYoutube, and LinkedIn.

LEAVE A REPLY

Please enter your comment!
Please enter your name here