Auto sales seen to zoom past 500k units this year

MANILA, Philippines — Vehicle sales in the Philippines may hit a record-high of over 500,000 units this year, driven by a favorable macroeconomic outlook, according to leading automotive firm Toyota Motor Philippines Corp. (TMP).

With the industry poised for continued growth this year, TMP is looking to expand its product lineup and enhance its vehicle leasing service.

TMP chairman Alfred Ty said in a press event last Friday that the firm sees encouraging prospects for the automotive industry this year.

“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 eight percent,” he said.

He said the automotive industry’s total sales or combined sales of the Chamber of Automotive Manufacturers of the Philippines Inc., Truck Manufacturers Association, Association of Vehicle Importers and Distributors Inc. and the Electric Vehicle Industry Development Act players, hit a new all-time high of 474,000 units last year.

Last year’s industry sales were up by eight percent from 2023 and surpassed the previous record-high of 473,000 units in 2017.

Ty said the achievement is expected to have generated up to P70 billion in taxes and 138,000 direct and indirect jobs.

“The macro outlook is reasonably optimistic – GDP (gross domestic product) is expected to exceed six percent, the financial sector remains sound with a growing consumer loan portfolio, OFW (overseas Filipino worker) remittances and BPO (business process outsourcing) earnings are seen to expand, the exchange rate is relatively under control by the central bank, government infrastructure spending is expected to continue and election-related spending will trigger incremental economic demand,” he said.

He said TMP continues to play a significant role in the country’s automotive industry, with its sales also hitting an all-time high of 218,019 units last year.

“Completing 23 consecutive years of our triple crown, the Philippines remained among the 10 largest markets for Toyota worldwide,” he said.