The Philippine vehicle market expanded by almost 16% in the first eight months of 2007, fuelled by the strongest economic growth seen since the Asian economic crisis a decade ago.
Go deeper with GlobalData
Sales amounted to 73,565 units during the eight-month period, compared with 63,580 units a year earlier.
Economic growth gathered momentum in the second quarter with GDP growth rising by 7.5% year-on-year – slightly higher than the revised 7.1% growth rate reported for the first quarter. This brings first-half economic expansion to 7.3%, driven by 8%-plus growth in industrial output and services and high levels of remittances from overseas workers. Agriculture expanded by 3.9%.
The government is cautiously optimistic about the short-term growth prospects, despite the global financial turmoil. Its full-year GDP growth target of between 6.1% and 6.7% will likely be met, with some in government expecting growth to exceed 7% for the full-year. For 2008, the government is forecasting GDP growth of around 6%.
Toyota remained the overall market leader in the first eight months of 2007, with sales of 27,037 units and a market share of 36.7%, followed by Honda with 11,409 and a 15.5% share; and Mitsubishi with 9,440 units and 12.8%.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataPassenger car sales saw moderate growth during the January-August period, with volume rising by just under 4% to 25,670 units, from 24,694 a year earlier. Honda performed strongest in this segment, with a market share of almost 35% compared with Toyota’s 32%.
The Honda Civic model, launched last year, has become the country’s best-selling car model this year – having overtaken the Toyota Vios which was not replaced with a redesigned line until August.
Most of the market rise has been in the commercial vehicle segment, with growth reasonably widespread. Segment sales, including SUVs, rose by over 23% in the first eight months of the year to 47,895 units. Mitsubishi has performed strongly in this segment, with sales rising by 21% to 8,662 units thanks to strong sales of the L300 van and minibus and L200 pickup truck. Toyota remained the market leader, however, with 18,763 sales – giving it a 39% share of the commercial vehicle market.
Tony Pugliese
