Yadea Group Holdings, a manufacturer of electric two-wheeled vehicles, has announced plans to invest approximately $1 billion in establishing an e-motorcycle factory in the Philippines. The director-general of the Philippine Economic Zone Authority (PEZA), Tereso Panga, revealed that Yadea is among several electric vehicle (EV) companies eyeing the Southeast Asian nation for their manufacturing expansion.
Yadea currently operates six production hubs in China and one in Vietnam, boasting an impressive annual capacity of over 12 million vehicles. While the company has not yet responded to media inquiries, Panga confirmed that Yadea has expressed its intention to submit an application to PEZA for the establishment of a factory in Batangas, situated south of Manila, the capital city.
The proposed facility is anticipated to have an annual production capacity ranging from 3 million to 5 million units, catering to the domestic market’s demands while also holding potential for export opportunities. In 2022, the Philippines produced 935,000 motorcycles and scooters, as reported by the ASEAN Automotive Federation. Furthermore, government data reveals that there were approximately 8.07 million registered motorcycles in the country by the end of 2021.
Recognizing its standing as a relatively modest performer in attracting foreign direct investment compared to regional counterparts, the Philippines is actively implementing measures to entice EV manufacturers and export-oriented industries. These include tax incentives and streamlined permit processing. However, the country faces stiff competition from Thailand and Indonesia in the pursuit of capturing the attention of EV companies.
Moreover, the Philippines seeks to leverage its ample reserves of nickel, copper, and cobalt, essential raw materials in the EV industry, to attract more investment. In addition to Yadea, American and British electric vehicle companies are reportedly exploring opportunities for battery and e-motorcycle manufacturing sites in the country, according to Panga.
PEZA, aiming for growth in investment approvals, has set a target of a 10% increase this year compared to the 140.7 billion pesos ($2.51 billion) recorded in 2022. With Yadea’s substantial investment and the interest of other international players, the Philippines is positioning itself as an emerging hub for the thriving EV industry in Southeast Asia.