New vehicle sales in the Philippines increased 6% to 39,331 units in July 2024 from 37,096 units a year earlier, according to member wholesale data released jointly by the Chamber of Automotive Manufacturers of the Philippines Inc (CAMPI) and the Truck Manufacturers Association (TMA).

The vehicle market has continued to grow this year after rebounding strongly in the previous two years from the pandemic lows, driven by strong domestic economic activity. Preliminary data released this week shows the country’s GDP expanded by 6.3% year on year in the second quarter, up from 5.8% in the first quarter, driven by strong government spending and investment.

Household spending growth was steady at 4.6% in the second quarter, despite the central bank having hiked its benchmark interest rate from 2% to 6.5% in the last two years as it focused on containing inflation and on supporting the peso.

Vehicle sales continued to grow despite the country being hit by several powerful typhoons [hurricanes] in July which caused severe flooding in many parts of the country.

CAMPI president Rommel Gutierrez said in a statement: “New product launches, improved product offerings, good sales momentum as well as supply availability helped neutralise the impact of Typhoon Carina, especially towards the latter part of July.”

Data released by the two associations showed vehicle sales rose by 11% to 265,610 units in the first seven months of 2024 from 239,501 a year earlier, with commercial vehicle sales increasing by 9% to 194,812 units while passenger car sales rose by 17% to 70,798 units.

Toyota reported an 11% sales rise to 122,730 units in the seven month period; followed by Mitsubishi with 50,599 units (+19%); Ford 16,817 (+1%); Nissan 15,819 (+1%) and Suzuki 11,499 (+13%).

Earlier this year the government added hybrid electric vehicles (HEVs) to its EO12 zero tariff programme, which was previously available only for zero emission vehicles such as battery electric vehicles (BEVs) until 2028. Local automakers said they planned to step up HEV launches in response to this new policy.

Earlier this year Toyota announced plans to begin production of the new Tamaraw utility vehicle in the third quarter of 2024 with deliveries expected to start in November. The model is based on the new Hilux Champ entry level pickup truck produced in Thailand.