Philippine vehicle sales surge in April 2024

Vehicle sales in the Philippines accelerated by more than a fifth in April compared to a year ago, driven by strong demand and the availability of automotive financing.

Data released by the Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and the Truck Manufacturers Association showed that 37,314 motor vehicles were sold in April, marking a 21.8% increase from 30,643 units in the same month last year.

However, sales dipped slightly by 0.4% from 37,474 units in March.

“On the demand side, positive consumer and business confidence plus stability in automotive finance boosted sales,” CAMPI President Rommel Gutierrez said.

Commercial vehicle (CV) sales rose by nearly 17% to 27,272 units in April, up from 23,326 units a year ago. Sales of passenger cars (PC) increased by 37.6% to 10,069 units from 7,317 units in the same period last year.

From January to April, total vehicle sales rose by 14.8% to 146,920 units, compared to 127,927 units in the same period the previous year.

CVs accounted for the bulk of total vehicle sales with 108,667 units sold in the first four months, a 13.4% increase from 95,857 units a year ago. PC sales climbed by 19.4% to 38,280 units from January to April, compared to 32,070 units in the same period last year.

Toyota Motor Philippines Corp. maintained its market leader position, accounting for 46% of vehicle sales in the first four months.

Mitsubishi Motors Philippines Corp. followed with a share of 18.94%, Ford Motor Co. Philippines Inc. with 6.59%, Nissan Philippines Inc. with 6.38%, and Suzuki Philippines Inc. with 4.16%.

With the recent approval by the National Economic and Development Authority of the expanded coverage of Executive Order (EO) 12 to include hybrid electric vehicles (HEV) and plug-in HEV as part of EVs that can enjoy zero tariffs, Gutierrez said, “CAMPI is expecting improvement in EV sales ratio this year considering EO 12 support.”

He noted that combined EV sales only accounted for 2.5% of total vehicle sales last year.

Regarding the Department of Energy’s announcement of the implementation of higher biofuel blends starting October, CAMPI said new vehicles being sold are already compatible with B3 biodiesel.

Additionally, CAMPI stated that the use of E20, or gasoline blended with 20% ethanol, is voluntary.

CAMPI anticipates that vehicle sales could grow by 9% to 468,000 units this year, up from 429,807 units sold in 2023, and potentially reach 500,000 units as the group hosts the Philippine International Motor Show (PIMS) later this year.