Car sales to reach 512,000 in 2025

Philippine automotive sales are expected to reach 512,000 units this year amid a more promising macroeconomic outlook, said Toyota Motor Philippines Corp. (TMP).

At a media event on Friday, TMP Chairman Alfred V. Ty said that the prospects for the industry this year are “encouraging.”

He noted the macroeconomic outlook is “reasonably optimistic,” as the gross domestic product (GDP) growth is expected to surpass 6% this year.

The government’s GDP growth target is set at 6-8%.

Mr. Ty said the financial sector “remains sound” as the consumer loans continue to rise.

He also cited the projected growth in overseas Filipino worker remittances and business process outsourcing earnings, as well as a “relatively under control” peso-dollar exchange rate.

“Government infrastructure spending is expected to continue, and election-related spending will trigger incremental economic demand,” he said.

“As a result, we are projecting sales to grow to over 500,000 units, half a million new cars — 512,000 units to be exact — representing a sustained growth of 8%.”

In 2024, the automotive industry sold 467,252 units, up by 8.7% from the 429,807 units sold in 2023, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

Mr. Ty said that adding the sales from the Association of Vehicle Importers and Distributors, Inc. (AVID) and some Electric Vehicle Industry Development Act (EVIDA) players to CAMPI-TMA’s total pushed industry-wide sales to over 474,000.

“The combined sales of CAMPI, TMA, AVID, and some EVIDA players come to 474,000 units, with 12 motor vehicle manufacturers and assemblers, up to 60 brands, and more than 400 models on the road,” he said.

Mr. Ty said higher car sales translate to more jobs, government revenue, investments and exports.

“As the Philippine auto market continues to expand, I am very much encouraged by the added possibilities this growth brings with it. The auto industry is truly transforming into a major pillar of economic development,” he added.

Increasing sales volume has encouraged automakers to expand in the country.

“I am hoping that we can harness the collective power of every automaker doing business in the country in realizing a more united automotive program to develop the auto industry into a major economic force in support of the nation’s long-term development plans,” he added.

For Toyota, Mr. Ty said the company expects to grow sales by 8% this year.

Last year, TMP sold 218,019 units, up 9% from the previous year, making the Philippines among the 10 largest markets for the Japanese car giant worldwide. Toyota had a 46.66% market share in the Philippines in 2024.

TMP sold 63,007 passenger cars in the Philippines last year, rising 14.7% from 2023. It had a 52.17% share of the passenger car market.

It sold 155,012 commercial vehicles in the Philippines, up 6.8% from the previous year. This accounted for a 44.74% share of the commercial vehicle market.

“It helped us secure jobs for over 69,000 Filipinos in 2024 and realize over $1 billion of exports for the country and contribute PHP 35 billion to government revenues,” Mr. Ty said.

“Our volume sellers will continue to be Vios and Tamaraw. And then Innova will continue to deliver. So, we believe the commercial vehicles will continue to be stronger this year,” he added.

Late last year, the company launched the Next Generation Tamaraw, which has three in-house conversions: utility van, dropside, and cargo.

“We are quite ambitious at this point. Around 20,000 (sales) in a year is our target, initially for Tamaraw,” TMP President Masando Hashimoto said.

If the 8% growth is realized, the company will end the year with around 235,460 units sold.

Meanwhile, Mr. Hashimoto said that the company is looking at expanding its electrified lineup.

“Our main focus has been on hybrid electric vehicles (EVs), with our customers seamlessly adopting them over time, adapting to the hustle and bustle of many Filipinos,” he said.

“Along with the clamor of plug-in hybrid EVs, we see the potential of an expanded electrified lineup, and this may come sooner than you think.” — Justine Irish D. Tabile