China E-bike Maker Yadea to Invest $1bn in Philippines Plant

Chinese electric two-wheeled vehicle manufacturer Yadea is to put about $1 billion into an e-motorcycle factory in the Philippines, as Manila looks to attract more foreign investment.

The Philippines investment promotions agency chief said on Thursday that Yadea Group Holdings is one of a several electric vehicle (EV) manufacturers looking at the Southeast Asian nation.

Tereso Panga, director-general of government-run Philippine Economic Zone Authority (PEZA), told reporters Yadea has signified its interest in filing an application to PEZA for a factory in Batangas, south of the capital, Manila.

Yadea, which has six production hubs in China and one in Vietnam with an annual capacity of more than 12 million vehicles, did not immediately respond to a request for comment.

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The hub will have an annual production capacity of 3 million to 5 million units that will cater to domestic demand, with potential for exports, Panga went on.

The Philippines produced 935,000 motorcycles and scooters in 2022, ASEAN Automotive Federation data shows. There were 8.07 million motorcycles registered in the country as of end-2021, government data revealed.

The Philippines, a regional laggard in attracting foreign direct investment, is trying to entice EV manufacturers and export-oriented industries through tax perks and faster processing of permits. It faces big competition from Thailand and Indonesia in the race to court EV makers.

The Philippines is also touting its abundance of nickel, copper and cobalt, which are key raw materials for the EV industry.

American and British electric vehicle firms are also scouting for battery and e-motorcycle manufacturing sites, Panga said.

PEZA targets a 10% increase in investment approvals this year from 140.7 billion pesos ($2.51 billion) in 2022.

Reuters with additional editing by Sean O’Meara

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.