NEW VEHICLE SALES in the Philippines hit a record-high 467,252 in 2024, but fell short of the full-year target, 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) showed total vehicle sales last year jumped by 8.7% from 429,807 units in 2023.
It missed the industry’s 468,300 sales target by 0.2% last year.
For the January-to-December period, commercial vehicle sales increased by 8.1% to 346,482 units, while passenger car sales rose by 10.5% to 120,770 units.
Sales of commercial vehicles, which accounted for 74.15% of the total, were driven by Asian utility vehicles (AUV) and light commercial vehicles.
AUV sales jumped by 33.7% to 81,818 units, while sales of light commercial vehicles rose by 2.1% to 253,412 units.
Sales of light-duty trucks went up by 1.7% to 6,545 units, while those of medium-duty trucks grew by 5.8% to 3,970 units.
On the other hand, sales of heavy-duty trucks dropped by 27.3% to 737 units.
Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said vehicle sales would continue to grow this year.
“Philippine car sales in 2025 are likely to grow by 6-8%, driven by demand for passenger cars and commercial vehicles, especially AUVs and light commercial vehicles,” he said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the electric vehicle (EV) segment would be another sales growth driver.
“The Philippines has yet to catch up with other countries in increasing the demand for EVs 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 EV adoption in the country to have reached 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 he expected EV sales to account for fewer than 10% of the total industry sales.
DECEMBER SALES
Meanwhile, CAMPI-TMA data showed a 7.4% increase in sales in December to 42,044 from 39,153 units in December 2023.
“In December 2024 alone, the industry recorded 42,044 units sold, a 2.8% [increase] month over month,” said Mr. Gutierrez.
“The positive results in December reflect the continued strength of the industry, with strong growth in both passenger cars and key commercial vehicle segments. The overall market remains on track to sustain growth into 2025,” he added.
Passenger car sales rose by an annual 5.5% to 10,125 in December. Month on month, passenger vehicle sales were up by 2.94%.
However, the bulk came from sales of commercial vehicles that grew by 8% to 31,919 in December. Month on month, commercial vehicle sales were up 2.8%.
Sales of AUVs grew by 4.1% year on year to 6,829 units in December. However, month on month sales fell by 13.4%.
Sales of light commercial vehicles went up by 9% to 24,099, while those of light trucks jumped by 11.2% to 616 units.
Heavy truck sales surged by 83.3% to 99 units, while sales of medium trucks dropped 3.5% to 276.
MARKET LEADERS
In 2024, Toyota Motor Philippines Corp. remained the market leader with a 46.66% share. Toyota’s full-year sales rose by 9% to 218,019 units.
Mitsubishi Motors Philippines Corp. came in second with a 13.7% increase in sales to 89,124 units.
In third spot is Ford Motor Co. Phils., Inc. whose sales dropped by 10.6% to 27,997 units.
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 jumped 10.4% to 20,371 units.
“Manufacturers with diverse product lines and strong dealership networks will have an edge,” said Mr. Arce.
He said Toyota would likely remain the market leader this year.
“Toyota is expected to maintain dominance, while competitors like Mitsubishi and Suzuki will likely leverage the growing AUV and light commercial vehicle markets,” he added.
However, Mr. Arce said there are risks to sustained car sales growth in 2025, which include “economic headwinds, potential interest rate hikes and supply chain issues.”
CAMPI earlier set an “aspirational” sales target of 500,000 for 2024. However, Mr. Gutierrez said late last year that if the industry fails to breach the 500,000 level in 2024, it would likely reach it in 2025. — Justine Irish D. Tabile