Yadea Eyeing $1 Billion Investment In New Factory In The Philippines

The proposed battery manufacturing hub will cater to the local and neighboring markets.

By: Enrico Punsalang

Jun 18, 2023 at 7:46pm ET

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Electric vehicles, particularly motorcycles, have seen a massive surge in recent years. This is especially true in the Asian market, given the practicality and no-frills nature of electric scooters and motorbikes. It's no surprise that a lot of the big electric two-wheeler companies are from the region, with India and China being drivers of the segment. For example, Chinese brand Yadea has its sights set towards expansion.

Speaking of Yadea, the Chinese brand has a wide selection of models that cater to the needs of a wide variety of commuters. Most of these consist of electric scooters, mopeds, and bicycles designed to offer practical and affordable mobility solutions. Indeed, Yadea shows no signs of slowing down, and has recently announced an investment of $1 billion in a new production facility in the Philippines.

Although the Southeast Asian country has yet to fully embrace electrification, there has been a growing number of electric scooters and bicycles on Philippine roads. Recently, as well, California-based electric motorbike manufacturer Zero struck a deal with a major corporation in the Philippines, with the intention of producing electric motorcycles for the Southeast Asian market.

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As for Yadea, the up and coming company already has six production facilities in China, and one in Vietnam, where it produces its electric two-wheelers for sale in the respective markets, and for export to neighboring countries. Putting up shop in the Philippines holds quite a lot of potential for Yadea, as its population is heavily dependent on motorcycles for mobility. On top of that, the country has been actively trying to attract direct foreign investment with lowered taxes and accelerated processing of permits.

According to a Reuters report, Yadea has already expressed interest in filing a PEZA (Philippine Economic Zone Authority) application to setup a battery factory in Batangas, about an hour's drive from the country's capital of Manila. Once approved and constructed, Yadea's battery facility will cater to local demand, as well as fulfill the requirements of neighboring Asian countries.