New vehicle sales in the Philippines increased by just over 2% to 39,542 units in September 2024 from 38,628 units a year earlier – according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA).
Growth has slowed significantly in recent months after the market rebounded strongly in the previous two years from the pandemic lows. Overall economic growth in the country has remained strong, however, with the latest data showing GDP expanded by 6.3% year-on-year in the second quarter, up from 5.8% in the first quarter, driven by high government spending and investment.
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Household consumption growth was steady at 4.6%, despite the central bank having hiked its benchmark interest rate from 2.0% to 6.5% in the last two years as it focused on containing inflation and on supporting the peso. In the last two months the central bank cut its benchmark rate by 25 basis points on two occasions to 6.0% to help underpin domestic consumption.
The vehicle market last month was driven higher by a 9% rise in passenger vehicle sales to 10,438 units, despite successive typhoons in the last two months which caused widespread flooding and damage in many parts of the country, while commercial vehicle deliveries were flat at 29,104 units.
Rizal Commercial Banking Corporation’s chief economist Michael Ricafort told local reporters last month: “Newer models, more brands, more electric and hybrid vehicle launches, favourable demographics, and improving employment data in recent months are still driving up demand for vehicles.”
Data released jointly by the two associations shows vehicle sales rose by 9% to 344,307 units in the first nine months of 2024 from314,843 a year earlier, with commercial vehicle sales increasing by 8% to 253,542 units while passenger car sales rose by 13% to 90,765 units.
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By GlobalDataToyota reported a 10% sales increase to 159,088 units in this period; followed by Mitsubishi Motors with 66,028 units (+14%); Ford 21,438 (-7%); Nissan 20,322 (+1%); and Suzuki 14,990 (+11%).
Earlier this year the Philippine government added hybrid electric vehicles (HEVs) to its EO12 zero-tariff programme, which was previously available only for zero-emission vehicles such as battery electric vehicles (BEVs), until 2028. Local automakers said they plan to step up HEV launches in response to this new policy.
Toyota is expected to launch its all-new Tamaraw utility vehicle later this month, with deliveries expected to start in November. The model is based on the new Hilux Champ entry-level pickup truck produced in Thailand.
