Traffic worsening around commercial or business districts? Parking becoming much more of a hassle in those areas? A new study commissioned by Inchcape could hold the answer why.
Inchcape’s latest Drivers of Change research surveyed 13 countries (seven in Asia-Pacific), covering nearly 6,000 respondents in total.
The study shows that more than 55 percent of Filipinos surveyed rely on personal vehicles. And that’s not for mobility per se, but as an economic enabler—a means to get to and from work.
The Philippines is the only country of the 13 surveyed where “work access” outranks “convenience” as the top reason for owning a car. 81 percent of near-term car buyers cite work access as their main motivation for purchasing a car and 59 percent says it expands access to better job opportunities further away.
With more than 70 percent of Filipinos exhibiting a great desire or need to own their very own car, it marks a clear behavioral shift from private vehicles being strong emotional purchases to one that’s more of practical in nature.
Filipinos desire for practical means of getting to and from work is also reflective of their vehicle choices. While only 14 percent of respondents say they own a New Energy Vehicle or NEV (the collective term that combines hybrid, plug-in hybrid, and battery electric vehicles), 70 percent express the intent to own one—more than double the average NEV intent in Latin America.
Surprisingly, it’s not energy cost savings that’s the primary motivator of NEV purchases in the Philippines. 82 percent cites positive environmental impact as their main reason for consideration—the highest recorded across the seven Asia-Pacific countries surveyed.
Despite high NEV intenders, more than 70 percent of Filipinos still view NEVs as being too expensive. Moreover, there remains concerns about battery life (40 percent), public charging infrastructure (34 percent), driving range (33 percent), and charging time (30 percent).
This is compounded by the Philippines’ very low per capita motorization rate. Currently, the Philippines has 10 vehicles per 1,000 people trailing behind Indonesia (69), Hong Kong (90), Singapore (111), and Thailand (173).
“The shift to sustainable mobility in the Philippines is happening in a very pragmatic way,” said Alex Hammett, Managing Director, South Asia & Pacific, Inchcape. “Filipino consumers are increasingly aware of the environmental benefits of electrification, but their decisions are ultimately shaped by practicality: affordability, reliability, and how a vehicle supports everyday mobility. That is why a multi-pathway approach, offering both hybrids and full electric vehicles, is important to accelerate adoption.
With 65 percent of Filipinos calling for the need for better consumer education surrounding NEVs, it’s important for distributors and dealers such as Inchcape Philippines to invest in capability building across its network. They also must equip technicians and sales consultants to support customers with informed guidance on battery life, safety, and total cost of ownership.
“As the market evolves, our role goes beyond selling vehicles. We are helping build the capabilities and confidence needed to support the shift to electrified mobility,” said Alex Hammett, Managing Director, South Asia & Pacific, Inchcape.
That's why car culture here is dead. Those who are doing the car meets and all that stuff, those are merely clinging to the glory days.
ReplyDeleteSad truth. Emotional connection is important for those who are passionate about cars.
DeleteMeanwhile, 90% of pick up and SUV drivers buy to overcompensate for their lack of girth.
ReplyDeleteThis seems quite true for most Filipinos buy and drive vehicles like Toyota Hilux, Nissan Navara, Mitsubishi Triton, Mitsubishi Xpander, Toyota Avanza, Toyota Veloz, and the likes. Even sedans are shrinking.
ReplyDeleteI'm one of the few still holding on to c segment sedans (Mazda 3 - an emotional choice) and would never buy an suv.
ReplyDeletethe emotional choice is too expensive
ReplyDeleteI want a Brio, I don't even care if its small lol. As a hatchback it's still practical and it looks like a fun bubuwit of a car 😆
DeleteHmmm. I dunno, brio is aight but it seems like a daddy bought car for his teenage son, or you’re a bit of a pansy. That’s how I perceiev people driving those cars. Well that applies all for the subcompact hatchbacks. The most I could see as dignified transportations are compact hatchbacks like the mazda 3.
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