Automotive Sales To Grow By 8.5 Percent This Year

Automotive vehicle sales in the Philippines are expected to continue growing this year, supported by robust economic activity, but are projected to decline next year, according to forecasts by Fitch Solutions.

Vehicle sales for the first eight months of the year reached 304,765 units, 10.3 percent higher than the 276,200 units sold in the same period last year. I Photo: Manila International Auto Show Facebook

Fitch projects that vehicle sales will rise from 1.6 percent last year to 8.5 percent this year, with a total of 466,500 units expected to be sold in 2024.

This growth will be driven by the commercial vehicle (CV) segment, whose sales volume is expected to increase by 7 percent to 343,000 units, supported by strong growth in the construction and mining sectors this year.

“We project demand for CVs to be bolstered by robust growth in the construction sector, driven by substantial government expenditure and increases in fixed capital investment as businesses expand their operations. Additionally, the mining and quarrying sectors will contribute to the growth in medium and heavy truck sales,” Fitch stated.

However, CV sales growth is expected to slow to 1 percent next year.

Near-term demand for passenger cars (PCs) will also support the overall industry's growth this year, aided by a strong labor market and economic growth.

“The unemployment rate has declined to its lowest level in nearly two decades, exerting upward pressure on incomes and thereby enhancing car affordability,” BMI said. BMI also significantly revised its growth forecast for PC sales from 1.5 percent to 13 percent.

“For 2025, we anticipate that reduced borrowing costs will continue to support the growth of the passenger car segment, as households respond favorably to lower financing rates,” the report added.

The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association reported that vehicle sales for the first eight months of the year reached 304,765 units, 10.3 percent higher than the 276,200 units sold in the same period last year.

“This impressive growth is a testament to the confidence and support of our consumers,” said CAMPI President Rommel Gutierrez.

“This year, the Philippine market experienced a diverse array of product offerings, addressing various consumer needs, thanks to numerous new model releases from both established and emerging industry players. Additionally, there is growth in the sales of electric and hybrid vehicles, effectively supported by government incentives aimed at promoting environmentally friendly transportation,” Gutierrez added.