New vehicle sales in the Philippines increased by over 10% to 37,604 units in January 2025 from 34,060 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). Sales last month were driven by strong demand for commercial vehicles, which increased by 17% year-on-year to 29,875 units, while passenger vehicle volumes fell by 8.5% to 7,729 units.
The Philippine vehicle market continued to make progress last month, after rebounding strongly in the last three years from the pandemic lows, helped by stable economic growth in the country. GDP grew by 5.2% year-on-year in the fourth quarter of 2024, similar to the previous quarter, supported by higher government spending and a rebound in exports. The central bank has cut its benchmark interest rate by 25 basis points three times since last August, to 5.75%, and further cuts are expected this year to support domestic consumption.
Toyota reported a 12% sales increase to 18,080 units last year, helped by the recent launch of the new entry-level Hilux Tamaraw; followed by Mitsubishi Motors with 7,375 units (+21%); Nissan 2,365 units (-4%); Suzuki 1,782 units (+20%); and Ford 1,576 units (-36%).
CAMPI expects the vehicle market to continue to grow in 2025, with full-year sales forecast to exceed 500,000 units. The association’s president, Rommel Gutierrez, told reporters: “Newly rolled out models and the anticipated introduction of new models will help achieve this target.”
The associations’ data shows that a total of 1,600 electrified vehicles were sold in January, including 1,445 hybrid electric vehicles (HEVs), 146 battery electric vehicles (BEVs) and 9 plug-in hybrids. Last 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.
Reports earlier this month suggested the Philippine government plans to introduce new incentives this year to encourage more local vehicle manufacturing in the country, under its “Revitalizing the Automotive Industry for Competitiveness Enhancement” (RACE) programme. RACE will look to channel market incentives mainly to local producers to encourage investment.
Michael. Ricafort, Chief Economist at Rizal Commercial Banking Corporation, expects the electrified vehicle segment to be a key driver of growth in 2025. He recently pointed out “the Philippines has yet to catch up with other countries in increasing the demand for EVs and hybrid vehicles, given the increased competition in terms of lower prices from China, Vietnam and other countries.”
Earlier this month local distributor Omoda and Jaecoo Motor Philippines officially launched sales operations in the country, with the aim of having 24 sales outlets in operation by the end of the year -selling some 1,000 vehicles per month combined.
