Watt’s Next: The MMDA’s Ban on E-Bikes and E-Trikes
It is no secret that Filipinos love cars. The impressive vehicle sales performance for the first quarter of 2024 showing a 12.7% increase year on year[1] is clear indication of the auto industry’s recovery from the COVID-19 pandemic-induced slump[2] .
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In the Philippines, Electric Vehicle (EV) adoption is picking up speed, with EV sales in the first half of 2023 up 500% compared to EV sales for the entirety of 2022.[3] ? According to a 2023 survey conducted by marketing research firm Standard Insights, Filipinos display a positive attitude towards EVs as a top choice for transportation, especially with the younger generation. A significant 50.8% expressed confidence in EVs becoming the future of the automotive industry, showcasing a positive development for the country’s transportation sector.[4] ?As the country continues to embrace EVs, another industry has quietly been on the rise, the Light Electric Vehicle Industry.
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With the Metropolitan Manila Development Authority’s (MMDA) ban on light e-trike and e-bike formally coming into effect last April 15, 2024, many road users are confused as to what exactly the ban covers.
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MMDA Regulation No. 24-002, series of 2024 (the “Regulation”), implemented through, among others, MMDA Memorandum Circular No. 2024-04 (the “IRR”), provides that all e-bikes, defined as any two or three-wheeled mode of transportation propelled by an electric motor,[5] e-trikes,[6] any three-wheeled vehicle powered by an electric motor, and other electric vehicles as found in Sections 2.5 to 2.8, and 2.10 of Land Transportation Office (LTO) Administrative Order No. 2021-039 are prohibited from traversing national roads.
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About the Author:
Hans Richmond R. Ong is a Junior Associate and a member of the Mergers and Acquisitions, Corporate Services, Technology Media and Telecommunications, Data Privacy Cybersecurity and AI, and Intellectual Property Departments of the Firm. His practice includes providing legal guidance and assisting with compliance matters in Technology, Media, Telecommunications, Data Privacy and Cybersecurity law. He also assists clients in commercial dealings including the conduct of legal due diligence in mergers and acquisitions.
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