EVs, public transport, and clean air

Interest in electric vehicles (EVs) has risen dramatically, driven mainly by rising fuel prices for traditional internal combustion engine cars. EV sales from January to May 2026 are up 133.5 percent over the same period last year, and EVs now account for 18 percent of the total market. There are three types: battery EVs, hybrid EVs, and plug-in hybrid EVs.

As promising as that trend sounds, at Liveable Cities we believe we can do more. If we are to reap the full benefit of EVs, we believe we should expand their reach beyond the passenger vehicle market into mass transit and commercial logistics or delivery vehicles. Currently, about three-quarters of registered EVs are passenger vehicles, mainly SUVs, cars, and sedans. Utility vehicles, motorcycles, and tricycles make up just 21.6 percent, and among utility vehicles, EV taxis are on the rise.

The way forward is the convergence of a shift to EVs for passenger cars, public transit, and commercial deliveries, coupled with an energy transition to renewable energy.

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More EVs will reduce our dependency on gasoline and diesel, most of which are imported, and whose prices are volatile due to the ongoing Middle East war. The shift is truly significant if we include mass transit such as buses, jeepneys, and tricycles, which carry far more commuters than private vehicles. GET (Go Electric Transport) already runs EV employee shuttles and has revived the old “Love Buses” of the 1980s on an EV platform. Mober uses a fleet of EV delivery vehicles to move furniture and fast-moving consumer goods, and is expanding into container vans and smaller delivery vehicles, all on an EV platform.

This makes sense only if two things happen: a shift to renewable energy and an expansion of charging infrastructure. The shift to renewables is well underway, with the Department of Energy (DOE) pushing for 50 percent renewables in the energy mix by 2040. The Green Energy Option Program now lets consumers aggregate demand in an area to as low as 50 kilowatts to source all their energy from a renewable supplier. As more chargers are installed, they should be connected to clean sources rather than traditional power plants.

Charging infrastructure is another matter. The country has under 2,000 public charging points nationwide, and the main obstacle is the length of the application and approval process. We faced a similar problem years ago with telecom cell-site towers, where a permit took about eight months, longer than construction itself. Working with the industry, the Department of Information and Communications Technology of the Philippines and the Anti-Red Tape Authority cut the steps and time needed to obtain a permit, and the industry rapidly expanded tower construction. Third-party tower builders added even more capacity. The same approach should apply to EV charging, which faces the same mix of national rules and local regulations. This is a very solvable problem.

Two breakthroughs will help EV use expand. The first is installing charging points on national highways and expressways in the provinces, addressing “range anxiety” as people feel more confident about finding charging points. Since charging takes longer than refueling, commercial establishments like cafes and convenience stores will likely sprout around chargers. The second is when chargers appear in traditional gas stations, where drivers already stop. Once that happens, EV provincial buses should expand, and more passenger cars will be braver to hit the road for longer journeys.

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Another benefit of shifting to EVs powered by clean energy is clean air. Air pollution costs the economy as much as P4.5 trillion by some estimates, including health-care costs and lost productivity, with 66,000 deaths annually from ambient and household air pollution. Transportation is the biggest source (56 percent), and public utility vehicles emit large amounts of particulate matter, nitrogen oxides, and carbon monoxide. Air pollution is a leading contributor to deaths from respiratory infections, ischemic heart disease, and chronic obstructive pulmonary disease—risks that commuters and drivers face on a daily basis.

Viewed in this context, there’s no doubt that a comprehensive policy which covers electric vehicles, renewable energy, and smart public transport could result in cleaner air. For this to happen, we would need more cohesive action among the DOE, Department of Transportation, Department of Public Works and Highways, and industry players. This is a transition that could contribute to creating more livable cities.

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Guillermo M. Luz is chair of Liveable Cities Philippines.

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Business Matters is a project of the Makati Business Club (makatibusinessclub@mbc.com.ph).