With over a million motorcycles and scooters manufactured in 2022 and more than 8 million registered motorcycles in the country, China's Yadea Group Holdings, a prominent player in the electric two-wheeled vehicle industry, has set its sights on the burgeoning two-wheeler market in the Philippines with plans to invest a whopping $1 billion in an e-motorcycle factory.
The company is planning to establish its presence in Batangas, south of Manila, with an annual production capacity of 3 to 5 million units to cater to domestic demand and explore export opportunities.
By bringing this plan to life through its investment, Yadea joins a growing list of electric vehicle manufacturers eyeing the Southeast Asian country for expansion opportunities. Currently, Yadea has six production hubs in China and one in Vietnam with an annual capacity of more than 12 million vehicles.
Another incentive for the expansion is the tax incentives offered by the Philippine Economic Zone Authority (PEZA). The body further plans to increase investment approvals by 10% this year, building upon the success of the 140.7 billion pesos ($2.51 billion) approved in 2022.
These efforts are strategic moves by the Philippines to position itself as a prime destination for foreign EV manufacturers and be able to compete with neighbouring countries like Thailand and Indonesia, consequently fostering economic growth, and solidifying its presence in the global market.
And beyond the allure of its incentivized market, the Philippines also boasts abundant reserves of nickel, copper, and cobalt, which are crucial raw materials for the electric vehicle industry. This emphasis positions the country as an attractive destination for American and British electric vehicle firms scouting locations for battery and e-motorcycle manufacturing.