Vehicle sales seen to reach 500,000 units this year

Vehicle sales in the country may hit 500,000 unit sales this year, driven by new models and production as well as better economic performance.

In an interview with reporters, Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) president Rommel Gutierrez said it’s possible for vehicle sales to hit 500,000 units this year.

This would mark an increase of 16.3 percent from the 429,807 units sold in 2023.

“Possible, because we grew by 21 percent last year,” Gutierrez said.

The growth in vehicle sales this year would be driven by production, new models, and improved macroeconomic performance, with reference to the country’s gross domestic product and moderated inflation rate.

He also mentioned remittances from overseas Filipino workers as another sales driver for the sector.

Last year, the industry breached the 423,000-unit sales forecast for 2023

“CAMPI attributes this impressive performance to sustained consumer demand, easier access to credit, and improved supply conditions across all brands,” the group said in an earlier statement.

“2023 was a very strong year for the industry and we are very excited about 2024. Positive economic outlook, new model introductions and the electrification trend are expected to contribute to record-breaking sales this year,” Gutierrez said earlier.

Last October, CAMPI had revised upward its 2023 sales forecast to 423,000 units from the earlier projection of 395,000 unit sales.

CAMPI reported that in December alone, vehicle sales grew 5.1 percent to 39,153 from 37,259 units in the same month of the previous year.

It attributed the growth to end-of-the-year deals.

Passenger car sales drove the growth in 2023, posting a 27.2 percent increase, to 109,264 units.

Commercial vehicle sales posted a 20.2 percent growth last year to 320,543 units from 266,699 in 2022.

CAMPI said light commercial vehicles consisted mainly of pickup and sports utility vehicles, accounting for a 79 percent share at 248,148 units.

Toyota Motor Philippines Corp. remained the market leader in the country last year, with a 46.54 percent market share as it sold 200,031 units, higher than the 174,106 units it sold in 2022.

Mitsubishi Motors Philippines Corp. came in second with a market share of 18.2 percent, selling 78,371 units, up from 53,211 units in the previous year.

Closing in the top five are Ford Group Philippines with a 7.3 percent market share, Nissan Philippines with 6.3 percent market share, and Suzuki Philippines with 4.3 percent market share.