Terra Motors Corp., the Japanese firm that produced the first working e-trike unit in the country based on the Department of Energy’s (DOE) design, is considering making the Philippines its manufacturing hub for electric vehicles (EVs) in Asia, officials said in a briefing.
The Philippine government and the Asian Development Bank (ADB) are in the process of bidding out a supply contract that will pave the way for the deployment of 100,000 e-trikes on Philippine roads by 2016. The DOE is working with the ADB to promote the use of e-trikes first in Metro Manila and, later, throughout the country to curb both fuel imports and air pollution brought about by the use of fossil fuels.
Besides bidding for a supply contract that would provide a steady market for its e-trikes, Terra Motors is also considering making the Philippines a hub for EV (e-trikes, e-bikes and related products) manufacturing for both local sales and exports.
CEO Toru Tokushige said in a briefing that Terra Motors had EV orders from overseas markets such as Thailand and Indonesia.
Unlike many EV suppliers, Terra Motors provides after-sales services and maintenance, Tokushige said. Terra Motors will also provide the charging stations and develop the “ecosystem” for EVs. For this, he said, the company was seeking local partners.
Tokushige admits the unit price for Terra Motors’ e-trike will be initially expensive because of the development cost for the mass production mold and difficulty in manufacturing and/or sourcing parts and electric components. As such, the company is studying the Philippine market and wants to collaborate with a local company to “localize” the e-trikes.
Business development manager Teppei Seki said the company was seeking tax breaks from the Board of Investments to help it manage the cost of producing e-trikes in the Philippines and eventually make the country a manufacturing hub for the vehicle.
There are at present 350 million tricycle units in the Philippines, many of which are polluters and are costly to operate due to high gas prices.