Meralco: EV prices to match ICE cars by 2024

Would you buy an EV if the prices went down?

One of the reasons why people aren't buying electric vehicles, at least in the Philippines, is due to the price. Just take a look at the prices of EVs available today. Some of the most affordable models like the Nissan Leaf still retails for PHP 2.8 million. At that price, you could easily afford a top-spec Toyota Fortuner LTD and still have extra money to spare. Simply put, they aren't affordable for the average consumer.

But Meralco likes to think differently. The electric company believes that by 2024, the prices of EVs will match that of internal combustion engine (ICE) vehicles.

“The EV industry sees 2024 as the tipping point. We expect electric vehicles to reach price parity with conventional models by then,” says Meralco’s EV Product Manager Anthony T. Agoncillo.

According to the company, the local EV industry’s optimistic outlook comes from conversations with automakers that have started to introduce their electric vehicle models locally. Furthermore, forecasts from BloombergNEF suggest that the total cost of ownership (TCO) of electric vehicles will reach parity with cars that use internal combustion engines around 2027. Aside from lower costs, the company adds that the savings from using electricity as a power source for vehicles can be as much as 70% compared with gas-fueled cars.

So far, more government agencies are starting to adopt EVs. For starters, the Philippine Senate has passed the Electric Vehicles and Charging Stations Bill, while the House of Representatives is working on its version of the bill. Meanwhile, the Land Transportation Office (LTO) already issued an administrative order which consolidated guidelines on the classification, registration, and operation of EVs, including E-jeeps and E-trikes.

Whether it happens in 2024 or several years later, the development is good news for Meralco, which has been at the forefront in pushing for “green mobility” since 2010. Agoncillo, who has been with Meralco for 21 years, has spent most of his time getting EVs on the street to ferry people around. Some of his early converts include universities, mall operators, and local government units.

Assuming the prices of EVs do end up matching that of ICE cars by 2024, would you make the switch?