Electric vehicles make headway amid Iran war

MANILA, Philippines –  Vietnamese electric vehicle (EV) maker VinFast is experiencing fast growth as consumer interest grows amid the Iran war which has resulted in skyrocketing fuel prices. 

For those who can afford the switch to EVs, the cost of operating one has become more tempting than ever. The Department of Energy (DoE) notes, as reported by BusinessWorld, that even before the current conflict, EVs were significantly cheaper to operate — costing roughly P1.75 per kilometer compared to P5 per kilometer for conventional cars. Pump prices have nearly doubled, so the per-kilometer price for traditional fuel-driven cars have experienced such an increase too. 

Last Saturday, March 28, VinFast Philippines, on their Facebook page noted the “incredible demand” for their new VF3 “mini-EV,” a car that, as one commenter points out, looks like the fan-favorite Suzuki Jimny. At P745,000, it is one of the cheapest EVs around. 

It competes with the current EV market leader BYD, with its P900,000 Seagull model — the third-best-selling BYD model in the Philippines in 2024. 

Undercutting competitors’ prices is a deliberate strategy for VinFast, says one analyst quoted by Nikkei Asia: “VinFast’s opportunity lies more in targeting different customer segments, particularly in emerging markets where factors such as total cost of ownership… and overall value for money are both considered.” 

In the long-term, the VinFast strategy relies on “ecosystem-building.” 

On March 28, when it processed 3,520 orders in a single day in its home country Vietnam — which the company says is a record — the company said that this day was an “inflection point” for the market. In its press release, the company said that “external factors” causing fuels to rise globally were a factor but ultimately this demand was a “natural outcome of accumulated effort.” 

Aside from taxi fleets in the Philippines and Indonesia, Nikkei reports that it also has road projects in the latter as part of a $1-billion investment strategy that includes “manufacturing, sales, service networks, and charging infrastructure.” The company, in June 2025, also announced that its investments for its taxi fleet in the Philippines would amount to $1 billion.

Owned by the VinGroup conglomerate, VinFast has money to burn. 

Along with aggressively-priced models, the company says it has also been active in planning charging ports, and ultra-fast charging hubs along major highways, along with plans for battery subscription options — moves that aim to make EV ownership as practical and predictable as the gasoline-powered era once was.

While VinFast has a factory in Indonesia and India, its CEO for Southeast Asia, Antonio Zara III, told ANC in an interview that it does not yet plan local manufacturing in the near term due to cost advantages under ASEAN trade agreements, and instead, it will import vehicles primarily from Vietnam. 

However, it is heavily investing in the EV ecosystem, particularly charging infrastructure expansion, mobility services (via taxi/ride-hailing fleets), and the aforementioned battery subscription model which offers lifetime replacement under a monthly fee of P1,600.

Zara says that the battery is often the first to degrade in devices. He compares it to iPhones. If you can just replace your battery, you’d still be able to use an old iPhone model. The battery subscription model allows that. 

“It’s inevitable the Philippines would move towards battery electric vehicles… We are at the tipping point towards this transformation because from being a novelty, we have become a practical choice,” Zara says. 

While BYD is still the market share leader, VinFast is also looking to capitalize as analysts told BusinessWorld that EV sales are projected to grow by double digits this year, likely exceeding 40,000 to 45,000 units.

In March 2026, ACMobility, the automotive arm of the Ayala Group that distributes BYD in the Philippines, reported a sharp rise in total unit sales. It moved 42,684 units in its 2025’s fiscal year, which is nearly double last year’s 23,483, again reflecting a growing consumer interest in electric vehicles (EVs). Even before the war, there was growing interest. The reliance on Middle East fuel supply, now disrupted by the war, serves to accelerate that interest further. 

Nikkei reports that Southeast Asia is also a very valuable market for BYD with its “growing middle class and untapped growth potential” especially when sales are slowing a little in its home country China, where it has seen a sales decline streak in six straight months since September 2025. 

Despite the positive outlooks for EVs, BusinessWorld quotes Nigel Paul C. Villarete, a senior adviser on public-private partnerships, who said that while EVs are “relatively new” interest for car buyers, public transportation remains the more efficient and effective mode of mobility. From a planning perspective, private car use — regardless of the power source — is viewed as “wasteful” in terms of both urban space and financial resources.

“But we live in a capitalistic society where the private (sector) wants to dictate over public good, so what the government has to ensure is the availability of the more efficient and cost-effective alternative in the hope of contributing more to national economic benefits,” Villarete told BusinessWorld. – Rappler.com