THE lack of bank financing, government incentives and charging stations are some of the major obstacles to the rollout of electric vehicles (EVs) in the country, a startup founder said.
“There is government support, but I would ask for more. Specifically, a tax holiday for using electric vehicles or including the 12 percent VAT in the moratorium would be beneficial,” said Dennis Ng, Mober founder and chief executive officer.
Mober is a pioneer of green logistics services in the Philippines.
At present, the EV industry is enjoying zero tariffs following the expansion of coverage of an executive order that temporarily grants tax breaks on the importation of certain electric vehicles, parts and components. These tariffs will be zero percent until 2028.
Besides tax perks, Ng said securing bank financing for scaling up an EV fleet is also challenging in the Philippines. However, under the Electric Vehicle Industry Development Act, financial institutions are encouraged to lend a certain percentage of their portfolio to EV manufacturers, assemblers and charging station operators.
The lack of charging stations is also another stumbling block in luring more Filipinos to shift to EV usage.
“I told my team that we have a two to three-year golden window (to grow the business) before a competitor comes in, but it may be extended until five years due to lack of government support. Who will build charging stations for us?” said Ng.
Green delivery service in Cebu
Ng was in Cebu to officially introduce Mober as the sustainable delivery service that will support the regional expansion of Swedish home furnishing retail giant Ikea Philippines in Cebu.
Mober will initially use two of its 100 percent EV fleet to support home deliveries in Cebu and other Visayas provinces, ensuring zero-emission deliveries. By the end of the year, the company is looking to add 10 to 15 EV units to cater to Cebu’s demand.
In addition to the sustainable delivery services, Mober will also assist Ikea’s warehousing solutions via a collection hub located in Cebu City, speeding up delivery times and increasing product accessibility for Filipino households in Visayas.
The collection hub serves as the last-mile delivery point for Ikea Philippines’ sustainable products and houses Mober’s EV charging stations.
The Cebu City facility includes Mober’s latest 15kw OCPP chargers, compatible with type 2 and GB/T standards, ensuring efficient support for Mober’s EV fleet serving Ikea.
“As EV ownership gains momentum, Mober is well-positioned to further its commitment to providing sustainable business solutions towards a net-zero carbon emission future by leveraging our all-electric fleet,” said Ng.
Ng transitioned Mober to an EV fleet in 2021. Besides Ikea, it is enabling sustainable delivery for retail giants in the Philippines like SM Appliance Center, Unilever Philippines, Nestle Philippines, Nespresso and Monde Nissin, as well as logistics firms Maersk and Kuehne+Nagel.
Felix Taguiam, past president of the Cebu Chamber of Commerce and Industry, welcomed Mober’s entry to Cebu, saying that its presence will help companies achieve their goal of reducing carbon emissions, particularly in the logistics aspect.
However, he noted that for EVs to flourish, especially for business use, they need more support. For instance, he highlighted the high costs for delivery trucks passing through different cities and towns, each requiring separate delivery permits.
“We have been asking the government for support. We know it will take time, but I hope it will be sooner,” he said.
Mober has a current fleet of 60 vehicles, composed of 30 e-trucks, 17 e-vans and four three-wheelers. / KOC