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EJ Macababbad - The Philippine Star
January 12, 2026 | 12:00am
Motorists crawl through heavy traffic along EDSA–Taft Avenue in Pasay City on January 4, 2026 as vehicles pass through sections reopened following the ongoing EDSA rehabilitation project.
Ryan Baldemor / The Philippine STAR
MANILA, Philippines — To make the jeepney modernization program work, local manufacturer Sarao Motors views retrofitting traditional jeepneys as a more cost-effective option for drivers than buying a brand-new unit.
Leonard John Sarao, operations supervisor at Sarao Motors, plans to present two models of modern jeepneys to the Department of Transportation (DOTr) early this year: a converted traditional jeepney and a modern jeepney built from scratch.
Sarao said the manufacturer hasn’t yet finalized the costs for the retrofitted jeepney, as they are still calculating expenses for other parts. However, a modern jeepney built from the ground up costs P2.8 million per unit.
“Honestly, we can see that it could possibly be more feasible to retrofit the traditional jeepney and make it modern,” Sarao, from his family’s third generation overseeing the vaunted jeepney manufacturer, told The STAR in an interview.
Sarao Motors retrofitted a traditional jeepney using the Philippine National Standards set by the DOTr, which include compliance with Euro-4 or 5 emission standards or the use of electric or hybrid power, higher ceilings and expanded passenger capacity of at least 23 people.
It retained the design of a traditional jeepney after its first modern jeepney prototype, launched in 2017, prompted mixed reactions for looking more like a bus. “We reinforced the framing to accommodate a greater height and be stronger in case of an accident. Then, we just widened the interior to make it easier to ride,” Sarao explained.
Meanwhile, the new modern jeepney is a collaboration between Sarao Motors and Netherlands-based firm Tembo.
Tembo provided the engine technology for the vehicle, allowing it to run on either electric power or diesel, while Sarao Motors designed the body and chassis. This model can carry even more passengers and includes a CCTV camera and air conditioning for safety and comfort. The interior is spacious enough that it’s comparable to an MRT coach.
Asked if the P2.8-million costing can still be reduced, Sarao said no.
“The cost of the components – the electric motor, the accessories – it’s really expensive,” he said. “It’s really easy to build this body; the Filipinos can do it.The only problem we have is the powertrain or engine,” he stressed, noting that the sensors, computer boxes and safety emissions features all add to the price.
The Euro-4-compliant engine, for instance, can cost between P650,000 and P1.5 million. In comparison, drivers only spend up to P120,000 for a second-hand engine used in traditional jeepneys.
Since domestic traders import these engines from countries like Australia, import taxes make them even more expensive. As a result, the modern jeepneys mainly attract private companies rather than jeepney operators.
“There are interested orders, but it’s not for public transport.Mostly for private corporations because they want it for shuttling,” Sarao said.
“Think about it: You’re going to take out a really big loan, and you’re going to pay, and the price of a traditional jeepney fare is the same as a modern jeepney fare.You can’t afford it,” he added.
A paper published by the University of the Philippines Center for Development Studies in July 2025 found that jeepney drivers and operators are likely to incur more debt when participating in the modernization program.
