Philippines Automobile Market Records Moderate Growth in September

In September 2024, sales of new vehicles in the Philippines rose by just over 2% to 39,542 units, compared to 38,628 units the previous year, according to the latest data from the Chamber of Automotive Manufacturers of the Philippines and the Truck Manufacturers Association. This slight increase follows a period of strong growth over the past two years, as the market recovered from declines due to the pandemic. Despite the slowed growth in the automotive sector, economic development in the country remains dynamic. In the second quarter, GDP rose by 6.3% compared to the previous year, driven by high government spending and investments. This is an increase compared to the 5.8% growth in the first quarter. Rising private consumption expenditure is stable at 4.6%, even though the central bank has raised interest rates to control inflation and stabilize the peso. Particularly noteworthy is the 9% increase in sales of passenger cars to 10,438 units, despite challenges posed by severe storms that caused damage in recent months. Sales of commercial vehicles, on the other hand, remained stable at 29,104 units. Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, pointed out to local media that new models, a greater variety of brands, market launches of electric and hybrid vehicles, and improved employment data are continuing to drive demand. In the first nine months of 2024, vehicle sales increased by 9% to 344,307 units, according to the two organizations. Sales of commercial vehicles grew by 8% to 253,542 units, while sales of passenger cars rose by 13% to 90,765 units. Toyota recorded a sales increase of 10% with 159,088 units in this period, followed by Mitsubishi Motors with 66,028 units (+14%), Ford with 21,438 units (-7%), Nissan with 20,322 units (+1%), and Suzuki with 14,990 units (+11%). Earlier this year, the Philippine government included hybrid electric vehicles in its EO12 zero tariff program, prompting local manufacturers to intensify their introduction of HEVs. Toyota plans to present its new Tamaraw commercial vehicle later this month, with deliveries set to begin in November.