Local manufacturer Sarao Motors sees retrofitting traditional jeepneys as a more cost-effective option for drivers than buying brand-new units to make the jeepney modernization program viable. They plan to present two models to the Department of Transportation early this year: a converted traditional jeepney and one built from scratch. Leonard John Sarao notes that a new unit costs P2.8 million, potentially leading to more debt for drivers.
Sarao Motors believes retrofitting traditional jeepneys is more practical than purchasing new modern units, especially amid the jeepney modernization program. Leonard John Sarao, operations supervisor and third-generation family member running the company, will present two models to the Department of Transportation this year: a retrofitted traditional jeepney and one built from the ground up.
The retrofitted model complies with the Department of Transportation's Philippine National Standards, including Euro-4 or 5 emission standards, or electric or hybrid power, higher ceilings, and capacity for at least 23 passengers. It keeps the traditional design after their 2017 prototype, which resembled a bus and drew mixed reactions. "We reinforced the framing to accommodate greater height and be stronger in accidents. Then, we widened the interior to make it easier to ride," Sarao explained.
The new modern model is a collaboration with Netherlands-based Tembo, which supplies engine technology for electric or diesel operation. It carries more passengers, features CCTV, air conditioning, and space comparable to an MRT coach. The P2.8 million price cannot be lowered due to costly components like the electric motor and emissions features. For instance, a Euro-4 engine costs P650,000 to P1.5 million, versus P120,000 for a second-hand engine in traditional jeepneys.
Import taxes make these engines pricier, so modern jeepneys appeal more to private companies than public transport operators. "There are interested orders, but not for public transport. Mostly for private corporations for shuttling," Sarao said. He added, "Think about it: you're taking out a big loan, paying it off, and the fare for a traditional jeepney is the same as a modern one. You can't afford it." A July 2025 study by the University of the Philippines Center for Development Studies found that drivers and operators would likely incur more debt under the modernization program.
