25-8-2023 (MANILA) Ayala Corp., a prominent Philippine conglomerate, announced on Friday its plans to establish a joint venture with Gogoro, Taiwan’s leading electric bike manufacturer. The partnership aims to enter the e-scooter market in the Philippines, Ayala Corp.’s home market.
The joint venture will not only focus on importing, selling, and maintaining motorcycles but will also provide battery-swapping stations. Ayala Corp., known for its involvement in urban development and management of commercial facilities, believes that investing in the necessary infrastructure will bolster the success of the new venture.
To materialize this collaboration, three companies will collectively invest $8.5 million. Ayala Corp. will contribute 21% of the investment, while 917 Ventures, a wholly owned subsidiary of Globe Telecom within the Ayala group, will provide 49%. Gogoro will chip in with 30% of the necessary funds.
Ayala Corp. is actively advancing its decarbonization efforts, including a shift towards renewable energy in its power business. Recently, the company signed a distributor agreement with BYD, a Chinese battery and electric car manufacturer. Ayala Corp. hopes that this partnership will create commercial opportunities by promoting electric vehicles (EVs) and supporting decarbonization efforts.
In the Philippines, where a well-developed railway network is lacking, cars and motorbikes serve as crucial means of transportation. However, EVs remain relatively rare on public roads. As of last year, there were only around 10,000 registered EVs, including electric motorbikes, in the country.
While EV adoption in the Philippines lags behind neighboring countries like Thailand, it is worth noting that out of the 10,000 EVs, approximately 8,000 are two- or three-wheelers. This highlights the potential demand for electric motorbikes in the market.
Gogoro, often referred to as the “Tesla of electric motorcycles,” has gained significant traction as one of Taiwan’s rapidly growing startups. The company offers a unique system that allows riders to swiftly exchange batteries at various locations around town in case of emergencies.
The Philippine government is actively promoting the use of EVs. In January, President Ferdinand Marcos Jr. signed an executive order granting a five-year tariff exemption for EV imports. Authorities also plan to extend this exemption to motorcycles and three-wheeled vehicles. Ayala Corp. and other businesses aim to capitalize on these favorable policies to expand their sales and contribute to the growth of the EV market in the Philippines.
