Philippines Vehicle Market slows down in 2024. Total sales in September grew only 0.8% to 38,926 units, after 5 months of steady growth. YTD figures reached 338,731, up 7.7% compared to the previous year.
Market Trend and Outlook
Following solid growth during 2023 (+5.6%), the Philippines economy is projected to grow by 6.0% in 2024 and 6.2% in 2025 as domestic demand picks up. Unemployment rate below pre-pandemic average and a slowdown in inflation as food prices moderate both supported household consumption. Moreover, the service sector expanded by 7.2% % and contributed nearly 80% of the GDP expansion, ensuring a decrease in fiscal deficit as revenues grew faster than expenditures.
Despite the positive momentum, the Philippines vehicle market slowed down in September 2024, as monthly sales reached 38,926 units (+0.8%). YTD registrations stood at 338,731 (+7.7%).
In the competitive arena, cumulative figures up to September 2024 reported the leader Toyota up by 9%, followed by Mitsubishi (+13.9%), Ford (-4.8%), Nissan (0%), Suzuki (+11.4%) and Honda (-2.9%).
Looking at the best-selling models the Toyota Vios was still on top with a 4.4% year-on-year increase in sales, followed by the Toyota Hilux up 9.3%.
Medium-Term Market Trend
The Philippines market have been one of the fastest growing in the decade before the covid arrive, with sales jumped from just over 150k in the 2010 to over 400K in 2019, with a peak hit in the 2017, when the all-time record was established at 487.000.
In the 2020 the pandemic arrival caused prolonged shutdown in plants and dealership and the market really collapsed losing 40.8% versus the previous year, hitting the worse level out if the previous seven years.
However, the fall was not caused by structural reasons and the recovery was immediate with 2021 sales recovering the 300k level and the pathway continued in 2022 with sales up to 397.848 (+7.2%).
Future perspectives are positive, considering the market potential is not far from the 1 million annual sales and we foresee this market as one of the best performing between now and the 2030.
Tables with sales figures
In the tables below we report sales for top 10 Brands and top 10 Models
