NEW DELHI sales in the Philippines hit a record high of 467,252 in 2024, but fell short of full-year targets, according to an industry group.
Joint report of the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed total vehicle sales last year down 8.7% from 429,807 units in 2023.
It missed the industry’s sales target of 468,300 by 0.2% last year.
From January to December, commercial vehicle purchases increased 8.1% to 346,482, while passenger car purchases increased 10.5% to 120,770.
Commercial vehicle sales, accounting for 74.15% of the total, were driven by Asian utility vehicles (AUV) and light vehicles.
AUV sales increased 33.7% to 81,818, while small car sales increased 2.1% to 253,412.
Sales of light trucks increased by 1.7% to 6,545, while those of light trucks grew by 5.8% to 3,970 units.
On the other hand, sales of heavy duty trucks decreased by 27.3% to 737 units.
Mr. Toby Allan C. Arce, head of sales at Globalinks Securities and Stocks, Inc., said that car sales will 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.
An economist at Rizal Commercial Banking Corp. Michael L. Ricafort said that the electric vehicle (EV) segment will be another way to increase sales.
“The Philippines has not caught up with other countries in increasing demand for EVs and hybrid vehicles, given the increased competition for low prices from China, Vietnam and other countries,” he said in a Viber message.
The Investment Board predicted that EV adoption in the country will 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 expects EV sales to account for 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 from 39,153 units in December 2023.
“In December 2024 alone, the industry recorded 42,044 units, which is 2.8%. [increase] month after 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 continue growing through 2025,” he added.
Passenger car sales rose 5.5% 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 by 8% to 31,919 in December. On a month-over-month basis, sales of commercial vehicles increased by 2.8%.
AUV sales grew 4.1% year-on-year to 6,829 units in December. However, month-on-month sales fell by 13.4%.
Sales of light vehicles increased 9% to 24,099, while light trucks jumped 11.2% to 616.
Sales of large trucks increased by 83.3% to 99 units, while sales of medium trucks decreased by 3.5% to 276 units.
MARKET LEADERS
By 2024, Toyota Motor Philippines Corp. remained the market leader with a share of 46.66%. Toyota’s full-year sales increased 9% to 218,019.
Mitsubishi Motors Philippines Corp. came second with a 13.7% increase in sales to 89,124 units.
In third place is Ford Motor Co. Phils., Inc. its sales fell by 10.6% to 27,997 units.
Rounding out the top five were Nissan Philippines, Inc., which dropped 1.3% in sales to 26,774 units, and Suzuki Phils., Inc. its sales fell 10.4% to 20,371.
“Manufacturers with diverse product lines and strong sales networks will have an edge,” said Mr Arce.
He said it is possible that Toyota will continue to lead the market this year.
“Toyota is expected to continue to dominate, while rivals such as Mitsubishi and Suzuki are likely to contribute to the growth of the AUV and small car markets,” he added.
However, Mr. Arce said there are risks to continued auto sales growth through 2025, including “economic headwinds, rising interest rates and potential supply chain issues.”
CAMPI previously set an “anticipated” sales goal of 500,000 by 2024. However, Mr. Gutierrez said late last year that if the industry fails to break the 500,000 mark in 2024, it will likely reach it in 2025. Justine Irish D. Tabile
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