Taiwan firm building EV-making plant in Subic

Taiwan’s Teco Electric and Machinery Co. Ltd., the leading industrial motor manufacturer globally, is putting up an electric vehicle (EV) assembly line in Subic, Zambales, as it targets to make the Philippines its EV manufacturing hub in the region.

The company will invest initially P300 million in the Subic assembly line.

“Our long-term EV development plan includes continually creating new competitive advantages in EV products, enhancing service and product quality, and creating outstanding products for the Philippine market, which we hope to export soon,” said Jay Huang, special assistant for business development at Teco Electric.

Huang said in an e-mail that the company decided to make the Philippines the starting point for this business line as it deemed the country an ideal place to develop EV compared to other countries in the region.

“The Philippines’ jeepney transportation system is old but organized. People, almost everyone, we talked to including government, operators and passengers want the system upgraded. That creates a strong force to adopt change and create a market here,” Huang noted.

“The Philippines also has no existing engine vehicle supply chain. This is critical because other countries need to face the resistance from existing engine car manufactures, since it involves too many jobs and investments. Based on the consideration of government policy maturity, market acceptance and existing manufacturing facility in Subic Bay, Teco chooses the Philippines to be its first overseas hub for the EV business,” he added.

According to Huang, the Subic facility will produce rolling chassis, which is vehicle chassis with power train, wheels, suspension, except car body. These will be sold to local car manufacturers, which will build the body, install the chairs, lights and do the paintings, he added.

The capacity will be about 200 to 300 units per month, he added.

“Right now, we are building small quantities in our Taiwan and China factories. We hope to start the commercial operation in Subic in late third quarter or early fourth quarter this year. We [currently] have some orders from local operators for road testing,” Huang said.

Teco is also building a fleet management system dedicated to EV. For instance, battery life will be monitored in real-time so that the headquarters can dispatch rescue vehicles or force the motor to go into energy saving mode upon electricity shortage and ensure that jeepneys finish the entire trip, Huang explained.

Huang, meanwhile, urged the government to provide clear-cut policies on EV assembly.