Residual value guarantee offers a new way to ease EV concerns

A regional EV giant offers near-original resale value for up to three years, aiming to reduce customer anxiety around EVs.

The Philippines is rapidly joining the global shift towards clean energy.

Over 29,000 electric vehicles (EVs) had been registered in the Philippines in 2025 so far, according to the Department of Transportation and the Land Transportation Office. However, experts project that EVs will only make up around 3% of total car sales by year-end.

Filipinos’ hesitation toward EV adoption stems largely from concerns over range, quality, and long-term resale value. Environmental think tank KLIMA Center describes these concerns as “range anxiety,” or the worry that EVs may run out of charge with limited options for recharging outside the home due to infrastructure gaps.

Vietnamese EV manufacturer VinFast, a newcomer to the Philippine market, aims to tackle these concerns with the recent launch of its residual value guarantee (RVG) program.

What is a residual value guarantee?

Residual value guarantee is a consumer program that ensures a guaranteed resale value based on a fixed annual depreciation schedule. For example, VinFast EV buyers can return their fully paid units to the company for 90% of the value after six months and up to 70% after three years.

The program is already offered in VinFast’s home market of Vietnam and was recently introduced in Indonesia. In the Philippines, RVG applies to all units purchased from October 20 onward. Even vehicles with dents, scratches, or general wear and tear qualify for the guaranteed residual value.

Units can only be returned for the RVG within three years of purchase. Antonio Zara, CEO of VinFast Southeast Asia, said the company intends to maintain the program indefinitely.

“Within three years, you would realize that you would really save on 70% [of what you would spend on] fuel. You would really save on maintenance; it is really safe going through floods. We are confident that within three years, people will realize that EV is for the consumer,” he said during the launch.

The RVG plan currently applies only to units sold to individual consumers, not fleets. VinFast also operates the electric taxi-hailing app Green GSM, and units returned under RVG will eventually be repurposed via Green Future, VinFast’s used car program planned for introduction in the Philippines.

Building an EV ecosystem in the Philippines

Ramping up EV adoption requires more than assuring the public of vehicle quality and safety.

We expect private companies to play a key role in building the supporting EV ecosystem, particularly by expanding the charging infrastructure. “Private companies particularly play a pivotal role in driving the development and deployment of EV charging infrastructure in the PH,” KLIMA Center said in a 2025 report.

Government efforts are also ramping up. Republic Act No. 11697, the Electric Vehicle Industry Development Act, passed in 2022, set initial guidelines for EV manufacturers entering the Philippine market. The Department of Energy announced in September an expedited certification process for new manufacturers, which also requires infrastructure plans to include charging stations.

The Department of Energy also announced in September an expedited certification process for new manufacturers seeking to enter the local market. The agency will also require manufacturers and distributors to include charging stations in their infrastructure plans.

The Comprehensive Roadmap for the Electric Vehicle Industry, unveiled in 2025, aims for 50% EV adoption on Philippine roads by 2040, a challenging target given the current 3% adoption rate.

Early adopters are already showing strong advocacy. Zara said, “If we reach 3%, perhaps by next year we can hit 6% or 7%. These are mostly the early adopters, and brand advocacy and referrals are very high. Once adoption rate hits 15%, you start hitting the mass market, and it becomes the tipping point.”

Building a fully functional EV ecosystem requires coordination between policy and business to assure consumers of EVs’ practical benefits. Institutions and individuals alike must do their part to make the shift toward electrified, zero-emission transportation feasible and sustainable.

 

 

Philippine EV adoption faces hurdles from cost and uncertainty. VinFast is tackling this with a program that guarantees near-original resale value for up to three years.

 

 

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