PH vehicle sales hit fresh record-high in 2024
Vehicle sales hit a new record-high in 2024, although that was not enough to hit the industry’s growth target for last year.
Vehicle manufacturers sold a total of 467,252 units last year, up at an annualized rate of 8.7 percent, according to industry data released on Tuesday by the Chamber of Automotive Manufacturers of the Philippines Inc. (Campi) and Truck Manufacturers Association (TMA).
Figures showed this was the highest volume of vehicles sold on record, beating the previous peak of 429,807 that was seen in 2023.
In December alone, auto sales went up by 7.4 percent year-on-year to 42,044 units.
Below target
However, the overall 2024 performance fell below the industry’s expectations. Local vehicle makers had hoped to sell 500,000 units last year and grow sales by 10 to 15 percent.
“The overall market remains on track to sustain growth into 2025,” Campi president Rommel Gutierrez said nevertheless.
As it is, auto sales are widely used, including by the central bank, as an indicator of economic health.
This is because consumer spending historically accounts for about 70 percent of the Philippines’ gross domestic product, and heightened purchases of big-ticket items like vehicles can significantly boost economic growth.
While the record-high sales volume was impressive, the below-target industry performance could be an indication of the “firm but subdued” domestic demand conditions that the Bangko Sentral ng Pilipinas (BSP) had been seeing.
The latest central bank survey of households showed consumers were less pessimistic about purchasing big-ticket items in the fourth quarter of 2024. But consumer sentiment on buying motor vehicles and houses and lots stayed “downbeat.”
Dissecting the joint report of Campi and TMA, sales of commercial vehicles, which had a market share of 74.15 percent, had risen by 8.1 percent to 346,482 units in 2024. Passenger cars sold reached 120,770 units, marking a 10.5-percent increase.
Toyota Motor Philippines Corp. remained the dominant market player with a 46.66-percent share, followed by Mitsubishi Motors Philippines Corp. (19.07 percent), Ford Group Philippines (5.99 percent), Nissan Philippines Inc. (5.73 percent) and Suzuki Philippines Inc. (4.36 percent).
