One of the most frustrating headlines Filipinos often read is rising fuel prices. This is because every time pump rates jump, many Filipinos quietly rethink one of their big purchases: their next car. Add growing concern about climate change and worsening floods, and purchasing cars can be very problematic with increasing concerns on fuel economy, emissions, and long-term cost of ownership.
The rising costs of fuel, mostly due to the war on Ukraine, supply disruptions, and global shortages of available supply, are well-known among car owners in the country. Just in the third week of November this year, per-liter price increased by P1, extending gasoline’s streak of hikes to seven weeks. Add this to the fact that so much of the country’s energy use still relies on oil and transport, households are directly exposed to global price volatility.
Unsurprisingly, fuel efficiency has moved from “nice to have” to “non-negotiable” for many buyers. This has resulted in growing interest in smaller engines, start-stop systems, and fuel-saving technologies, while some families delay upgrading to bigger vehicles out of fear of future fuel shocks.
Having a similar impact on Filipino car-buying behavior is the growing environmental awareness among consumers. A great reminder of the need to be environmentally aware came in the last month when several typhoons ravaged scattered regions in the Philippines resulting in flooding, landslides, and loss of lives.
While not blamed as the direct cause of climate change, severe weather events, worsening urban air pollution, and recurring floods have made the environmental footprint of vehicles a mainstream talking point rather than a niche concern. If a decade ago the typical car buyer only cared about horsepower, ground clearance, and monthly amortization, today more Filipinos are asking about carbon emissions, alternative powertrains, and whether their next purchase aligns with a more sustainable lifestyle.
Freepik