New vehicle sales in the Philippines reached a record high of 467,252 in 2024, but fell short of full-year targets, according to an industry group.
A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) show that total car sales increased by 8.7% last year compared to 429,807 units in 2023.
Last year it missed the industry’s target of 468,300 sales by 0.2%.
In the January to December period, commercial vehicle sales rose 8.1% to 346,482 units, while passenger car sales rose 10.5% to 120,770 units.
Commercial vehicle sales, which accounted for 74.15% of the total, were driven by Asian commercial vehicles (AUV) and light commercial vehicles.
AUV sales rose 33.7% to 81,818 units, while light commercial vehicle sales rose 2.1% to 253,412 units.
Sales of light trucks rose 1.7% to 6,545 units, while those of medium trucks grew 5.8% to 3,970 units.
On the other hand, heavy truck sales fell 27.3% to 737 units.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said auto sales would continue to grow this year.
“Auto sales in the Philippines are likely to grow 6-8% in 2025, driven by demand for passenger cars and commercial vehicles, especially AUVs and light commercial vehicles,” he said in a Viber message.
Michael L. Ricafort, chief economist of Rizal Commercial Banking Corp., said the electric vehicle (EV) segment would be another driver of sales growth.
“The Philippines has yet to catch up with other countries in increasing demand for electric vehicles and hybrid vehicles given increased competition in terms of lower prices from China, Vietnam and other countries,” he said in a Viber message .
The Board of Investments had projected that electric vehicle adoption in the country would reach 5% by the end of 2024, based on the projections of the Accelerating the Adoption and Scale-up Electric Mobility for Low-Carbon City Development in the Philippines project.
CAMPI President Rommel R. Gutierrez said in August that he expected electric vehicle sales to make up less than 10% of total industry sales.
DECEMBER SALE
Meanwhile, CAMPI-TMA data showed a 7.4% increase in sales in December to 42,044, compared to 39,153 units in December 2023.
“In December 2024 alone, the sector recorded 42,044 units sold, an increase of 2.8%. [increase] month after month,” Mr. Gutierrez said.
“The positive results in December reflect the continued strength of the sector, with strong growth in both passenger car and key commercial vehicle segments. The overall market remains on track to support growth through 2025,” he added.
Passenger car sales rose 5.5% year-on-year to 10,125 in December. Month on month, passenger car sales increased by 2.94%.
However, the bulk came from commercial vehicle sales, which grew 8% to 31,919 in December. Month on month, commercial vehicle sales increased by 2.8%.
AUV sales grew 4.1% year over year to 6,829 units in December. However, monthly sales fell by 13.4%.
Sales of light commercial vehicles rose 9% to 24,099 units, while those of light trucks rose 11.2% to 616 units.
Heavy truck sales rose 83.3% to 99 units, while medium truck sales fell 3.5% to 276 units.
MARKET LEADERS
In 2024, Toyota Motor Philippines Corp. market leader with a share of 46.66%. Toyota’s annual sales increased by 9% to 218,019 units.
Mitsubishi Motors Philippines Corp. came in second with a 13.7% increase in sales to 89,124 units.
Ford Motor Co. is in third place. Phils., Inc., whose sales fell 10.6% to 27,997 copies.
Rounding out the top five were Nissan Philippines, Inc., which saw a 1.3% decline in sales to 26,774 units, and Suzuki Phils., Inc., whose sales rose 10.4% to 20,371 units.
“Manufacturers with diverse product lines and strong dealer networks will have an advantage,” Mr. Arce said.
He said Toyota was likely to remain the market leader this year.
“Toyota is expected to maintain dominance, while competitors such as Mitsubishi and Suzuki are likely to benefit from the growing markets for AUVs and light commercial vehicles,” he added.
However, Mr Arce said there were risks to continued car sales growth through 2025, including “economic headwinds, potential rate hikes and supply chain issues.”
CAMPI previously set an “ambitious” sales target of 500,000 for 2024. However, Mr Gutierrez said late last year that if the sector fails to exceed the 500,000 level by 2024, it would likely reach this level in 2025. Justine Irish D. Table