Electric Jeepneys Needed As Phase-Out Plan for Old Units Looms

Support CleanTechnica’s work through a Substack subscription or on Stripe.

The iconic Philippine jeepney is undergoing its most significant transformation since World War II surplus jeeps first rumbled through Manila’s streets, but the electrification of this ubiquitous last-mile transport faces formidable financial and infrastructure challenges that threaten to slow the country’s clean energy transition.

Despite the Public Utility Vehicle Modernization Program’s mandate to phase out 15-year-old units by 2027, only 5% of the country’s 220,000 jeepneys have been electrified. However, a notable acceleration occurred in 2025, with e-jeepney deployments reaching over 1,000 units, signaling growing momentum in the sector.

The electric jeepney represents more than just vehicle modernization; it addresses the critical last-mile connectivity problem that links residential areas to major transport nodes across Philippine cities. As the backbone of urban and peri-urban transport, jeepneys carry millions of passengers daily on routes often too short or complex for buses but too long for walking.

The P2.5 Million Question

The central challenge facing e-jeepney adoption is stark economics.

“Financing overhauls to expand Land Transportation Franchising and Regulatory Board’s P300,000 ($5000) loans to zero-interest for e-fleets, covering 80 percent of P2.5 million (P44K) e-jeepney costs,” recommended Akshay Prasad, Principal at Arthur D. Little Southeast Asia’s Automotive & Manufacturing Practice. “Partner with DBP for cooperatives.”

This financing restructuring would reduce the burden on jeepney operators, many of whom are small-scale entrepreneurs or members of transport cooperatives operating on thin margins. Zero-interest loans covering 80 percent of costs could make the transition economically viable for the thousands of operators who must modernize or lose their franchises.

Depot Charging & Route-Based Solutions

Infrastructure development specifically designed for last-mile electric jeepneys requires a different approach than private EV charging. Since jeepneys operate on fixed routes and return to specific depots, charging infrastructure can be concentrated at these terminal points rather than distributed widely across public spaces.

“Mandate charging at depots, target 500 stations via CREVI, and route-based subsidies (PHP 50,000 per unit for high-traffic lines),” Prasad said, outlining a strategy that recognizes the predictable operational patterns of public transport.

The Comprehensive Roadmap for the Electric Vehicle Industry (CREVI) provides the framework for this depot-based charging infrastructure, but implementation requires coordination between local government units, transport cooperatives, and utility companies. The target of 500 depot charging stations would support the operation of tens of thousands of e-jeepneys, assuming multiple vehicles share each charging facility during off-peak hours.

Route-based subsidies add another layer of incentive, directing PHP 50,000 per unit toward operators serving high-traffic routes where the public benefit of reduced emissions and noise pollution is greatest. This targeted approach maximizes environmental impact in densely populated corridors while demonstrating the viability of electric public transport.

Local Assembly As Economic Catalyst

The e-jeepney program presents opportunities beyond transport modernization, potentially creating a domestic manufacturing sector that generates employment while reducing import dependence.

Local assembly plants like LCS-EMON have targeted production capacity of 500 units per month, demonstrating that Philippine manufacturers can meet domestic demand if supportive policies are maintained. The Batangas-based e-jeep plant, however, did not respond from a message from CleanTechnica regarding production volumes, although their e-jeeps are now in operation in the National Capitol Region, parts of Southern and Northern Luzon.

“Support plants like LCS-EMON’s with tax holidays, integrating with Public Utility Vehicle Modernization Program’s Euro 4+ standards,” Prasad recommended.

Tax holidays and other fiscal incentives for local assemblers could catalyze industry growth while ensuring that vehicles meet the PUVMP’s Euro 4+ emissions standards, even though electric vehicles produce zero tailpipe emissions. The standards ensure that any range-extended hybrid versions maintain environmental performance.

Integration With Clean Energy Goals

Aligning the jeepney modernization program with the broader clean energy transition requires attention to the electricity powering these vehicles. With the Philippine grid currently 80% dependent on fossil fuels, switching from diesel jeepneys to coal-powered electric jeepneys offers limited environmental benefit.

However, renewable energy reached 22% of the grid mix in 2024, with targets of 35% by 2030 and 100% renewable energy for EV charging by 2040. Accelerating solar and wind deployment — adding 5 gigawatts by 2027 — would ensure that e-jeepneys contribute meaningfully to emissions reduction.

Time-of-use pricing could encourage overnight charging when renewable energy is more available and grid load is lower, with rates of PHP 5 to 10 per kilowatt-hour during off-peak periods. This pricing structure benefits jeepney operators economically, while supporting grid stability.

The 2030 Vision

If financing, infrastructure, and local manufacturing alignments succeed, Prasad projects that 30% of the jeepney fleet could be electrified by 2030, cutting urban emissions by 20% while creating 50,000 jobs in manufacturing, maintenance, and charging operations.

This transformation would represent approximately 66,000 electric jeepneys on Philippine roads, primarily serving last-mile routes in Metro Manila, Cebu, Davao, and other urban centers. The emissions reduction would be particularly significant in congested city centers where jeepneys currently contribute substantially to local air pollution.

The success of the e-jeepney program carries implications beyond immediate environmental benefits. It demonstrates whether the Philippines can execute complex policy coordination between transport modernization, infrastructure development, and industrial policy — a test case for the broader electric vehicle transition.

As the deadline for the PUVMP approaches and operators face decisions about their livelihoods, the electric jeepney stands at the intersection of cultural preservation and technological progress. Whether this icon of Philippine transport successfully bridges the last mile into an electric future depends on policy execution in the next critical years.