The upswing in car sales was the result of the scarcity of mass transport systems aside from positive developments in the economy, an analyst said.
On Wednesday, a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (campi) and the Truck Manufacturers Association showed vehicle sales in the year to February reached an overall positive trend with a total of 76,768 units, marking a 6.4 percent increase from the previous year’s 72,132 units.
“The lack of mass transport system in most parts of the country also increased the need for more Filipinos to purchase vehicles, with more brands and models/varieties to choose from amid increased competition from Asian/global automakers,” Michael Ricafort, chief economist of the Yuchengco-led Rizal Commercial Banking Corporation, said.
According to CAMPI president Rommel Guttierez, the automotive sales trends in 2025 are influenced by several factors, including supply chain stability, growing demand for electric and autonomous vehicles, and global economic conditions.
“There have been notable consumers’ preferences for connected and personalized driving experiences, alongside a shift towards sustainability and environmental concerns. Technological advancements in AI, sensors, and infotainment systems, among others, can potentially transform the industry over time. These factors will contribute to the overall positive sales trends in 2025,” he said.
Toyota Motor Philippines Corp. remains dominant with a 47.67 percent share, followed by Mitsubishi Motors Philippines Corp. at 20.25 percent, Nissan Philippines Inc. with 5.79 percent, Suzuki Philippines Inc. with 4.63 percent and Ford Group Philippines at 4.34 percent share.
Ricafort credited the continued growth in vehicle sales to the country’s favorable demographics that may also reflect the country’s improved economic fundamentals since the Philippines is one of the fastest growing economies in ASEAN and Asia. It consistently had the fastest-growing vehicle sales and vehicle production in ASEAN in recent months and years.
“The country’s demographic sweet spot/demographic dividend or majority of the more than 113 million total population, the 12th largest in the world with a relatively young age of below 25 years old, already at working age since 2015, or more than 50 million Filipinos, increased incomes and spending power for more Filipinos, thereby allowing more of them to purchase vehicles, homes, consumer goods, and other products; one of the last major ASEAN/Asian countries to enter demographic sweet spot/dividend, thereby leading to GDP growth that is considered among the fastest in the region,” the RCBC analyst explained.
Ricafort continued that other factors that contributed to relatively faster vehicle sales growth compared to GDP growth include local employment/jobs data still among the best in nearly 20 years or since revised records started in 2005, and already in line with other more developed Asian/ASEAN countries, with recent unemployment low at 3 to 4 percent levels in recent months.
To sustain the growth, he said the Philippines has to catch up with other countries in increasing the demand for electric vehicles (EVs) and hybrid vehicles, given increased competition in terms of lower prices from China, Vietnam and other countries.
“Newer models, more brands, low down payment and more affordable vehicle purchase schemes, more EV and hybrid vehicle sales, modernization of transport fleet, favorable demographics, and improving employment data in recent months also still driving demand/sales of vehicles,” he further stated.
He said the continued growth in vehicle sales is also consistent and supported by the double-digit growth in consumer loans, particularly auto loans, despite defying relatively higher interest rates that have increased borrowing/financing costs since 2022.
Furthermore, he said the Philippines is the 10th largest globally in terms of vehicle sales for the world’s largest automaker.