The country’s automotive umbrella group is looking at a sales milestone of 500,000 units in 2025 as the domestic market continues to grow.
Federation of Automotive Industries of the Philippines (FAIPI) president Vicente Mills attributed this optimism to favorable economic conditions, market demand and upcoming developments.
“The demand for vehicles remains strong, driven by fleet modernization and economic recovery,” Mills said, highlighting the market’s resilience.
“The shift towards new technologies, including EVs, is inevitable as vehicle replacement accelerates,” he said, emphasizing the aging fleet in the Philippines.
Noting the Bangko Sentral ng Pilipinas’ decision to cut interest rates twice since August, Mills said the lower rates would make vehicle ownership more affordable, allowing businesses and consumers to return to the market.
He also highlighted the market’s low vehicle density compared to neighboring countries and the economic boost expected from the May 2025 elections.
While optimistic, Mills acknowledged potential challenges including infrastructure limitations, traffic congestion and lingering economic disparities.
He stressed the need for improved public transit systems to balance rising vehicle demand.
Data show that as of October 2024, vehicle sales reached 384,310 units, an 8.9-percent increase from the previous year’s 352,971.
Commercial vehicles, which saw a 7-percent in October, led the growth, alongside a 12-percent increase in passenger vehicles.
Toyota continues to dominate the market, with a 10-percent sales increase to 178,421 units in the first 10 months, followed by Mitsubishi, which saw a 13-percent rise to 73,376 units.
FAIP is the umbrella organization of local automotive groups such as the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI), Philippine Automotive Competitiveness Council Inc. (PACCI), Truck Manufacturers Association Inc (TMA), Philippine Motor Association (PMA) and Motorcycle Development Program Participants Association Inc (MDPPA).
