Fitch Solutions unit BMI said solid economic growth is driving sales of automotive vehicles, and the industry is expected to retain its upward trajectory.
BMI adjusted its growth projection for vehicle sales in the country upward from 1.6% last year to 8.5% this year, seeing a total sales of 466,500 units for 2024.
“We project demand for CVs to be bolstered by robust growth in the construction sector, driven by substantial government expenditure and increases in fixed capital investment as businesses expand their operations. Additionally, the mining and quarrying sectors will contribute to the growth in medium and heavy truck sales,” it said.
BMI said this will be driven by the commercial vehicle (CV) segment, whose sales volume is expected to rise 7% to 343,000 units, backed by solid growth in the construction and mining sector this year.
However, the outlook for CV sales growth next year is seen to slow down to 1%.
Near-term demand for passenger cars (PC) will also back the industry’s growth this year, supported by a strong labor market and economic development.
“The unemployment rate has declined to its lowest level in nearly two decades, exerting upward pressure on incomes and thereby enhancing car affordability,” BMI said.
BMI also revised its growth forecast for PC sales significantly from 1.5 percent to 13 percent.
“For 2025, we anticipate that reduced borrowing costs will continue to support the growth of the passenger car segment, as households respond favorably to lower financing rates,” it added.
The Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and Truck Manufacturers Association reported that vehicle sales for the first eight months of the year reached 304,765 units, 10.3%higher than the 276,200 units sold in the same period last year.
“This impressive growth is a testament to the confidence and support of our consumers,” CAMPI president Rommel Gutierrez said.
“This year, the Philippine market experienced diverse product offerings, addressing various consumer needs, thanks to numerous new model releases from established and emerging industry players.
Additionally, there is growth in the sales of electric and hybrid vehicles effectively supported by government incentives to promote environmentally friendly transportation,” Gutierrez added.
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