According to media reports, data from the Chamber of Automotive Manufacturers of the Philippines (CAMPI) and the Truck Manufacturers Association (TMA) revealed that new car sales in the Philippines rose from 36,714 units in August 2023 to 39,155 units in August 2024, marking a 7% increase.
The associations reported that cumulative car sales in the Philippines for the first eight months of 2024 reached 304,765 units, up 10% from 276,200 units in the same period last year. Sales of commercial vehicles increased to 224,438 units, a 9% growth, while passenger car sales rose to 80,327 units, a 14% increase.
From January to August this year, Toyota's sales in the Philippines grew by 11% to 140,654 units, followed by Mitsubishi (58,513 units, up 16%), Ford (18,961 units, down 4%), Nissan (18,270 units, down 2%), and Suzuki (13,206 units, up 12%).
Driven by strong domestic economic activity, the Philippine automotive market continued its steady growth this year, recovering from the lows of the pandemic over the past two years.
Government data showed that strong government spending and investment propelled the country's GDP growth to 6.3% in the second quarter, up from 5.8% in the first quarter.
Despite the Bangko Sentral ng Pilipinas raising the benchmark interest rate from 2% to 6.5% over the past two years to curb inflation and support the peso, household expenditure growth remained stable at 4.6% in the second quarter.
Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, stated, "New model releases, more brands, an increase in electric and hybrid vehicles, favorable demographics, and improving employment data in recent months are driving consumer demand for cars."
Last month, although passenger car sales fell by 6%, overall automotive sales grew by 11% due to increased deliveries of commercial vehicles. Adverse weather conditions, such as widespread flooding, affected car deliveries and sales in the past two months.
Earlier this year, the Philippine government included hybrid electric vehicles (HEVs) in its EO12 zero-duty program, extending it until 2028. Previously, the program only applied to zero-emission vehicles, such as battery electric vehicles (BEVs). Local manufacturers have indicated plans to expedite the release of hybrid vehicles in response to this new policy.
